Category Archives: Silver Rounds

First and foremost, as we have already said in our previous articles, the mainstream media mistakenly label these losses as “paper.” Those are real cash losses, and, importantly, they’re a part of the U.S. budget deficit. Continue reading →

In a recent interview with Liberty and Finance, legendary investor Rick Rule, CEO of Rule Investment Media, shared his insights on the current state of precious metals markets and the potential for a silver breakout. Rule, known for his expertise in natural resource investing, painted a picture of economic challenges and opportunities in the coming years. Continue reading →

Just two months ago, the precious metals community was growing frustrated with gold after its choppy, lukewarm summer price action. At that time, I kept urging investors to stay patient as I believed that gold was about to break out in multiple non-U.S. currencies, which would result in a powerful surge. Sure enough, that’s exactly what unfolded, and I believe even more gains are ahead. Now, I’m noticing the same frustration with silver, as it has remained stagnant for the past five months. In this article, my goal is to encourage investors to remain patient with silver, as I believe it’s on the verge of a strong breakout, much like gold—once these key conditions are met.

The first condition is straightforward yet largely overlooked by investors and has proven surprisingly challenging to achieve: the spot price of silver must close decisively above its $32.50 resistance level, backed by strong trading volume. The $32.50 resistance level was established at the May high, after which silver pulled back and remained stagnant over the summer. Silver recently attempted to break above that level on September 26th and October 4th, but both efforts fell short, leading to subsequent pullbacks. I believe the time is approaching, however, when silver will finally break through and close above that level, sparking a significant rally. Once that happens, I expect silver to surge rapidly to approximately $50.

The next condition is that silver, priced in euros, must close decisively above the €30 resistance level that formed at the May peak. This event would help confirm a close above $32.50, greatly reducing the chances of it being a false breakout. I find it valuable to analyze silver priced in euros, as this approach removes the impact of U.S. dollar fluctuations, offering a clearer view of silver’s intrinsic strength or weakness. Notably, silver priced in euros often respects round numbers like €26, €27, and €28, frequently establishing key support and resistance levels at these points. These levels are worth watching closely—take a look for yourself.

The final condition is more esoteric, but I believe it will significantly reduce the likelihood of an upcoming silver breakout being a false one: an index I developed, called the Synthetic Silver Price Index, must close above its key resistance zone between 2,560 and 2,640. This index represents the average of gold and copper prices, with copper’s price adjusted (multiplied by 540) to prevent gold’s higher price from disproportionately influencing the index (to learn more about this methodology, please watch a presentation I created). The price of copper is an often overlooked factor in silver’s performance and rivals the influence of gold. The index closely mirrors silver’s price movements, yet surprisingly, silver’s price itself isn’t even an input!

As I said earlier in this piece, there is a high probability that silver will quickly run to $50 once those three conditions are met. I’m focusing on $50 as a relatively short-term target because it’s a significant psychological level and the peak reached during both the 1980 and 2011 rallies. One of the reasons why I’m so bullish on silver is because its monthly chart reveals a recent breakout from a massive, two-decade-long triangle pattern. This breakout signals that silver is on the verge of a powerful bull market:

If that isn’t exciting enough, silver’s logarithmic chart, dating back to the 1960s, reveals a cup and handle pattern that suggests silver could reach several hundred dollars per ounce during this bull market. However, a close above the $50 resistance is necessary to confirm this scenario.

Although silver has already surged nearly 50% this year, there are plenty of reasons to believe it is just getting started. One reason is that the long-term gold-to-silver ratio chart shows silver is currently significantly undervalued compared to gold. If the ratio were to revert to its historical average of 52.8 since 1915, even without any increase in gold’s price, silver would be valued at a solid $50.36 per ounce.

Adjusting silver’s price for inflation further highlights how undervalued it is by historical standards. During the Hunt brothers-induced spike in 1980, silver reached an inflation-adjusted price of $143.54. In the 2011 bull market, driven by quantitative easing, it hit $68.04. Currently trading at just $31.60, silver has significant room to rise if it’s to catch up with these previous inflation-adjusted peaks.

Another way to assess whether silver is undervalued or overvalued is by comparing it to various money supply measures. The chart below shows the ratio of silver’s price to the U.S. M2 money supply, providing insight into whether silver is keeping pace with, outpacing, or lagging behind money supply growth. If silver’s price significantly outpaces money supply growth, the likelihood of a strong correction increases. Conversely, if silver lags behind money supply growth, it suggests a potential period of strength ahead. Since the mid-2010s, silver has slightly lagged behind M2 growth, which, combined with other factors discussed in this piece, could position it for a strong rally.

To summarize, silver is on the launch pad building up energy for a significant breakout. While investor frustration is understandable after months of stagnation, the technical and fundamental indicators suggest that silver is building momentum for an impressive move. The combination of breaking key resistance levels, both in U.S. dollars and euros, along with confirmation from the Synthetic Silver Price Index, will signal that the rally has officially begun. With historical trends and undervaluation further supporting this outlook, silver could be on the verge of a major run toward $50 and beyond. Continue reading →

(Reuters) China is set to launch its first-ever domestic platinum and palladium futures contracts in early 2025, a move that industry experts say could significantly impact global precious metals trading. Continue reading →

After months of stagnation, the silver market is poised for a significant price surge, according to renowned precious metals analyst Jesse Colombo. In a recent presentation, Colombo outlined several key conditions that must be met for silver to finally break out and replicate the impressive gains seen in gold. Continue reading →

Markets were awaiting additional data for signals on the health of the U.S. economy and for indicators on the Federal Reserve’s interest rate cut timeline. U.S. retail sales data for September come out Thursday, along with September industrial production data and weekly initial jobless claims data.  Continue reading →

In a recent eye-opening interview by Liberty and Finance, Andy Schectman, CEO of Miles Franklin Precious Metals, warned that we’re “in the eye of the hurricane” when it comes to global economic stability. With central banks worldwide increasing their gold reserves by 35% in 2022, Schectman’s insights offer a compelling case for the role of precious metals in today’s uncertain financial landscape. Continue reading →

The U.S. dollar silver chart has  “steps” that go back to the 1800s. Step 1 is from 1864 high to 1972, and Step 2 is from January 1980 to the current time. These steps differ from those on the gold chart in the linked article above. Continue reading →

The Shanghai silver premium, which measures the price difference between silver traded on the Shanghai exchange and international markets, has experienced a remarkable surge over the past year. This premium has increased from approximately 2% to 13.7%, closely mirroring the significant expansion of photovoltaic production in China during 2024. Continue reading →

(Bloomberg) — US equity futures pointed to a steady open, as earnings from a trio of Wall Street banks beat expecations. Treasuries rose.Most Read from BloombergShares of Citigroup Inc., Bank of America Corp. and Goldman Sachs Group Inc. rose after all three topped revenue forecasts. S&P 500 contracts and Nasdaq 100 futures were little changed.Corporate America is benefitting from lower rates early into the Federal Reserve’s easing cycle, defying reduced profit forecasts. The latest batch of bank results follow forecast-topping earnings from JPMorgan Chase & Co and Wells Fargo & Co. last week.Energy shares fell in premarket trading, as oil prices plunged below $75 a barrel after a report Israel will hold off attacking Iranian oil facilities. The yield on the 10-year Treasury benchmark fell 3 basis points.Investors’ allocations nearly tripled from last month, to a net 31% overweight, according to the latest survey by Bank of America. Bond allocations saw a record swing to a net 15% underweight.The bullish mood is being fueled by Federal Reserve cuts, China stimulus and the prospect of a soft economic landing in the US, according to the bank’s strategists.Nathan Thooft, chief investment officer and senior portfolio manager at Manulife Investment Management, expects earnings season to be pretty good, partly because expectations have been lowered. “Consensus is around 4% year-over-year,” he said. “It’s a fairly low bar.”Among other premarket movers, Nvidia Corp. and Advanced Micro Devices Inc. after Bloomberg reported the Biden administration discussed capping sales of advanced AI chips to some countries.Key events this week:Goldman Sachs, Bank of America, Citigroup earnings, TuesdayFed’s Mary Daly, Adriana Kugler speak, TuesdayMorgan Stanley earnings, WednesdayECB rate decision, ThursdayUS retail sales, jobless claims, industrial production, ThursdayFed’s Austan Goolsbee speaks, ThursdayChina GDP, FridayFed’s Christopher Waller, Neel Kashkari speak, FridaySome of the main moves in markets:StocksS&P 500 futures were little changed as of 8:17 a.m. New York timeNasdaq 100 futures were little changedFutures on the Dow Jones Industrial Average were little changedThe Stoxx Europe 600 was little changedThe MSCI World Index was little changedCurrenciesThe Bloomberg Dollar Spot Index was little changedThe euro was little changed at $1.0908The British pound rose 0.2% to $1.3082The Japanese yen rose 0.3% to 149.29 per dollarCryptocurrenciesBitcoin fell 0.5% to $65,562.88Ether fell 1.1% to $2,593.26BondsThe yield on 10-year Treasuries declined three basis points to 4.07%Germany’s 10-year yield declined three basis points to 2.24%Britain’s 10-year yield declined four basis points to 4.20%CommoditiesWest Texas Intermediate crude fell 4.2% to $70.76 a barrelSpot gold rose 0.1% to $2,651.60 an ounceThis story was produced with the assistance of Bloomberg Automation.Most Read from Bloomberg Businessweek©2024 Bloomberg L.P. Continue reading →

In a recent statement on X, Robert Kiyosaki, renowned author of “Rich Dad Poor Dad” and financial commentator, shared his insights on the current state of the gold market and offered a stark warning about a potential stock market crash. As gold prices reach unprecedented levels, Kiyosaki’s analysis provides a sobering perspective on the economic landscape and offers guidance for investors at all levels. Continue reading →