Silver Price Forecasts & Predictions

There is a big opportunity setting up in the silver market.

It should be no wonder: with global inflation reaching levels not seen in 13 years (source: https://www.cnn.com/2021/06/02/economy/inflation-oecd/index.html), markets are increasingly becoming concerned with ever-rising prices. It seems everywhere we look, prices for the things that we need to live (food, energy, housing) are increasing.

What is one way to protect oneself from rising inflation? By investing in tangible assets, which will at least keep pace with the inflation over the long run, and quite possibly outperform it.

What is one such tangible asset? The age-old form of money: silver.

Silver Rises in Inflationary Cycles

Since bottoming amidst the Coronavirus panic in March 2020 at $11.30 per ounce, silver has enjoyed a significant revaluation upward, closing nearly 150% higher as this article is going to press at over $28.00. However, that revaluation has not occurred in a linear fashion: silver first reached $28.00 back in August 2020. Essentially, then silver has been moving sideways amidst a consolidation for the last 10 months.

Consolidations after significant advances tend to represent pauses within markets. Nothing moves in a straight line forever, and such is the case with silver.

Let us examine silver’s August 2020 through present consolidation for clues as to how it may resolve.

Silver Ascending Triangle Consolidation

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Silver has definitely been in the spotlight lately, namely due to the incredible #silversqueeze rally. But as of right now, there is one detail that’s pointing to silver’s next movement.

Gold moved higher yesterday (Feb. 23) and so did the rest of the precious metals sector. But as you will see below, this didn’t really change anything. And there’s one detail that actually perfectly fits this kind of movement. Let’s take look at the charts, starting with the key one – and no, it’s not the one featuring gold.

Figure 1

Despite yesterday’s (quite sharp for a daily move) upswing, the breakdown below the neck level of the broad head-and-shoulders remains intact. It wasn’t invalidated. Consequently, all its bearish implications remain up-to-date.

Having said that, let’s move to the detail that actually fits what happened yesterday (and so far today). Namely, silver is going through a triangle-vertex-based reversal at the moment.

Figure 2

Indeed, after moving slightly above yesterday’s intraday high in today’s overnight trading, silver moved back down. The move lower is not yet super significant, but given the reversal point, it could just be the beginning. Remember the triangle-vertex-based reversal at the beginning of the year? Back then, practically nobody wanted to believe that silver and the precious metals market was topping at that time. It was the truth, though. Gold and mining stocks were never higher since that time and the same...