Silver is building up to breaking out above the key $50 level to new all-time highs, a major technical event that is expected to trigger a scorching short-covering rally that will be driven by a massive short squeeze that could trigger a “forcé majeure” event where delivery becomes impossible because there’s no silver on hand to deliver, as in “Sorry, we haven’t got any” and also assisted by the fact that silver is currently very undervalued relative to gold on a historical basis.
Before going any further you are advised to watch Mike Maloney’s recent video on silver entitled Triple Digit Silver Imminent if you haven’t already seen it. In this succinct video he makes many very important points in the space of less than 14 minutes, including that Central Banks are now buying silver, which means that it is being remonetized, silver is now in backwardation, meaning that spot silver is more expensive to buy than forward dated silver which is the reverse of the normal situation and very bullish, silver is being added to the US list of critical minerals and because silver production is as a by product of zinc, lead, copper and gold production, a severe economic contraction, which would result in less demand for industrial metals, will greatly reduce the supply of silver. Also, on an end of quarter and end of year closing price basis silver is already at new highs! and lastly, all of the silver mined in the world to date has less value than the current value of just one company, Amazon!
Now we will swiftly go through the charts on which it quickly becomes clear that the bull case for silver is “iron clad”.
Starting with the 6-month silver chart we see a picture that is entirely bullish, with silver advancing in a “staircase” pattern with its steady uptrend being punctuated by bull Flags and Pennants along the way – and this is before it breaks out to new highs – after it does and the short squeeze really bites, it is likely to ascend almost vertically and probably in a spectacular manner, leaving doubters standing on...