Silver and iShares Silver ETF (NYSE:SLV)) have NOT been good assets to buy and hold since the 2011 highs, as they have declined around 66% in the past 7-years.
Could the long-term trend downtrend in Silver be about to end? Below looks at silver futures over the past 8-years:
Over the past 3 years silver has created a series of flat bottoms around the $15.80 level. As the same time, it has created a series of lower highs at the top of falling channel (1).
Currently silver is testing a key breakout level at (2), where if it succeeds in breaking out, it would send a bullish price message for the first time in years.
If silver would breakout above, SLV would be good to own and the ETF below could present bullish opportunities as well.
Global X Silver Miners ETF (NYSE:SIL) remains in a downtrend, no doubt about it. Similarly to silver, SIL has created a series of flat bottoms and lower highs over the past year.
SIL is testing a breakout level this week at (1). If silver breaks above its 7-year falling channel in the top chart, SIL could follow and breakout at (1) above.
Is it “Hi-Yo Silver Time” for this out of favor metal? If dual breakouts take place, both could attract buyers that have been absent from this sector for years!