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Silver to Make Historic Move if It Breaks Above $50

Published 08/01/2023, 05:17 AM
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History shows that Silver reliably follows strength in Gold and leverages moves in Gold. Therefore, Silver is poised to benefit after Gold breaks out from its multi-decade base and cup and handle pattern. Even that relationship notwithstanding, Silver boasts its multi-decade base that offers even more explosive upside potential than Gold. Silver is trading within a huge historical base unparalleled in market history.

Silver must double to test its all-time high at $50/oz. Breaking above $50/oz would lead to a hugely explosive move. Although Gold could break its resistance within the next 12 or 18 months, Silver breaking $50/oz will require more time. Although Silver looks like a gigantic cup and handle pattern, it is not because the handle consolidation (2011 until present) retraced roughly 75% of the advance from $4/oz to $50/oz.

As the last video states, the handle consolidation typically retraces only 38% or 50% at the absolute most. Nevertheless, the huge base in Silver has extremely bullish implications once Silver is ready to break $50/oz. But unlike Gold, it is far from within striking distance. In summary, the coming breakout in Gold and the beginning of a new secular bull market that should last into the 2030s has tremendously bullish implications for Silver, not the least of which is breaking above $50/oz.

Upon breaking above $50/oz, Silver will trigger a measured upside target of roughly $95/oz. Considering the history of breakouts from multi-decade bases in this lesson, specifically in Copper, it would not be surprising to see Silver trading in triple digits within 18 months after breaking above $50/oz.

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