Last Monday, Money Metals posted “Silver Breakout in Progress” as a market update. We noted, “Silver prices will run into some overhead resistance just above the $16/oz level. Once broken, that technical line on the weekly chart could serve as a springboard for a run toward $19/oz – and ultimately higher.”
Fundamentally, a silver price below $16/oz is simply not sustainable given that all-in mining costs for the metal currently range into the high teens.
Silver’s unprecedented cheapness versus gold (at one point 1/126th the gold price) gives us further confidence that those extreme lows were anomalous displays of “peak fear” that will never be seen again.
Fed chairman Jerome Powell recently assured Congress the central bank is “committed to using our full range of tools to support the economy.” They are all “tools” of currency debasement, regardless of what jargon or acronyms monetary planners trot out to describe them.
Stefan Gleason is President of Money Metals Exchange, a precious metals dealer recently named "Best in the USA" by an independent global ratings group. A graduate of the University of Florida, Gleason is a seasoned business leader, investor, political strategist, and grassroots activist. Gleason has frequently appeared on national television networks such as CNN, FoxNews, and CNBC and in hundreds of publications such as the Wall Street Journal, The Street, and Seeking Alpha.