Between now and then, it is important to be patient and seize your silver position(s) to be able to mentally disconnect from your silver holding(s). Sooner or later, our silver call will deliver. We do wait for the USD to find a top which, if and when it happens, will lit a fire in the silver market. The reason for silver’s inability to move higher is the USD, simple as that. Any uptrend in any market has been short-lived at best and violently sold worst case.
For one full year, markets are either in a downtrend or consolidating. We also have to acknowledge that the market is not creating any trend since November of 2021. We do acknowledge that we are bullish on silver for a while now and that our bullish sentiment did not translate in higher silver prices. The monthly silver chart suggests that even a silver spot price of 16 USD/oz would not create any damage to silver’s long term profile. It is the type of chart that makes us happy. The monthly chart, contrary to the daily, has a really bullish setup. The big picture silver chart that helps us understand the big picture trend is the monthly silver chart, as seen below. Whenever it feels uncertain and whenever there is a consolidation, it is important to zoom out. Up until this point, this is a violent consolidation. In other words, it is important to stomach the silver swings for longer until silver starts a trend.Īs seen on the most basic silver price chart, without our annotations, it is clear how silver is in a trendless state for 4 full months now. Also, our USD forecast eventually will work out but not immediately.
Admittedly, the price action in silver is disturbing because of the wild swings.
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