A Long-term Look at Silver

Source: Safe Haven, Jordan Roy-Byrne (2/23/10)

". . .we are super bullish on the junior silver companies."

Throughout this bull market, silver has formed the same corrective pattern over and over again. Currently, silver is repeating the same pattern but on a much larger scale. Note that silver's decline in 2008 and ensuing recovery are a larger fractal of preceding corrections. See the chart below.

So what now? The pattern implies that silver will grind lower over the next four to six months, before beginning another impulsive advance. Judging from past corrections, silver could decline to as low as $12 or $13. Note the strong lateral support at $15, as well as the long-term moving averages clustering from $14 to $15.

Take a look at a 45-year chart and you'll notice that the upcoming bottom could be a major opportunity.

There is a problem with the recent data feed as it obfuscates the end of the chart but it doesn't affect our analysis. Other than major resistance at about $20 and a bit of resistance at $25, it is clear skies ahead for silver. We should also note the beautiful long-term cup and handle formation. The handle would be market action over the past two years.

Refer to our first chart and you'll notice that since March 2008, silver has thrice failed at $19. Needless to say, a close above that $19–$20 resistance could be very significant and would trigger a tremendous advance close to the spike high in 1980.

The technical outlook for silver is part of the reason we are super bullish on the junior silver companies. We believe these companies will be the real stars of the next several years.

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"China's export quota could be opportunity for Canadian miners"

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."