Move over gold, there’s a new precious metal sheriff in town: silver. As Yahoo Finance reports on May 20:
“Silver has outperformed gold in recent weeks, gaining 35% this year against gold’s 18% rise.”
The white metal’s price on May 19 tapped its highest level in 10, no wait 11, no 12, then back to 11 years.
On May 20, CNBC asked, “Can silver become the ‘new gold’ for investors?” and mainstream experts have answered: You betcha. One chief metals analyst said that he sees the “white metal reaching $100 per ounce” (Investing News, May 21).
While Kitco News on May 18 joined the white bullion bandwagon with this bullish endorsement:
“Silver does not look overheated.
“Long-term trends are also on the bulls’ side. In the last two years, they have been able to quickly turn the price to the upside after dips under the 200-week moving average. This year, the price is successfully pulling away from that line, but the most furious part of the rally may be ahead.
“Silver could be ready to repeat the growth spurt it showed in 2010-2011.”
The praises for silver’s upside potential keep coming… now, after catapulting 35% to become the “It” metal. But what about before those gains existed? Like, say, in March?
At that time, silver prices were nearly one year into a sideways to lower slog underway since April 2023.
Yes, just two months ago confusion and uncertainty over the Fed’s interest rate policy blurred silver’s near-term outlook. But, from an Elliott wave perspective, the metal’s trend was clear. On March 1, our Metals Pro Service identified a completed bullish triangle on silver’s price chart. Triangles are easy to spot on a chart. They are like neon signs: choppy, sideways patterns contained within trendlines. Once complete, triangles are followed by powerful price thrusts in the direction of the previous trend.
Here’s what the most common triangle, a contracting triangle, looks like in a bull market (left) and in a bear market (right):
The March 1 Metals Pro Service presented this chart of silver and its bullish triangle and wrote:
“We’ve had a bullish triangle that is bottoming and is in the early, early stages of rising in wave C. This is my alternate count, and it is a real possibility.”
The next chart captures the powerful rally that powered silver to 11-year highs in May.
Right now, our Metals Pro Service presents intraday and daily updates with the highest probability Elliott wave count for silver’s trend. If our analysis is correct, those who missed the first leg of the white metal’s red hot 2024 rally may have another opportunity to join the upside.
Of course, metals trading is volatile, and no market analysis is foolproof. But our Metals Pro Service identifies clear price support levels that prices must obey to keep the bull door open.
Metal Opportunities are Shining Bright
Right now, our Metals Pro Service takes you from passive observer to armored participant. This means, you’ll learn how to recognize specific price patterns that show the trend and a price target; or a correction that’s about to end; or the vital support and resistance levels for risk management.
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For investors interested in a wider, watching-and-waiting approach, our Elliott Wave Financial Forecast presents near- and long-term analysis of the broader trends underway in silver and gold.