The torrid rally in the silver market reached a major milestone this morning as prices hit $21/oz.
On Monday, the silver spot price tracked by Money Metals Exchange closed at $20.12 (the futures market price settled at $20.19).
That marks the first above-$20 close for silver since 2016.
Chris Marcus wanted my opinion about whether or not a silver “smash” was coming: “I would never want to be as dogmatic as saying ‘never’ because anything can happen with a banking [and financial markets] system as corrupt as the one in the U.S.”
But silver is historically cheap as an asset in relation to the universe of dollar-based financial assets and relative to the dollar-value of gold. Until the global monetary system is reset, gold and silver going much higher price in ALL fiat…
We are now potentially after the all-time high of the Dow (Feb 2020), just like after the all-time high in January 1973. I have no doubt that silver will surpass the $50 level as well as the $225.20 to match the Dow’s performance since 1913. The important question is: How long will this take?
The long-awaiting day has finally arrived. After five long years, silver has finally reached its previous high of $21 set back in 2016. So, now that the silver price has reached and broken through the $21 level, what’s next for investors?
Silver was higher this past week, reaching 19.87, and closed at 19.76.
We continue to rally in wave (i) of 3, and within wave (i), we are now thrusting higher in wave -v- of (i).
A run to the 21.23 high looks likely now before all of wave (i) ends.
In conclusion silver is believed to be limbering up to break out of its giant base pattern, which is a development that it likely to trigger a steep rally that can be expected to spark a stellar rally in many silver stocks, many of which are either still somewhat depressed or only just coming to life.
Here is the past week’s stock performance of eight of the leading primary silver miners. Fresnillo PLC’s stock price surged by 18% for the week, followed by double-digit gains from Hecla (13%), Coeur (11%), and Endeavour Silver (10%). What’s interesting, is to see First Majestic underperform the group at only 1.8%, when it was the darling back in early 2016.
We’ve only had one depression in modern times: the Great Depression, the worst economic downturn in the history of the U.S. and the industrialized world.
With unemployment at levels unseen since the Great Depression — the worst economic downturn in the history of the industrialized world — one has to be wondering if the country will eventually dip into a major depression.
Silver prices have increased by almost 60% since March 2020.
The price increase has been driven by dramatically increased physical demand.
Indian silver jewelry exports have increased by 104%.
If physical demand continues, as is likely, prices will probably rise dramatically further in September, 2020.