Smashed Silver Snaps Back into Ferocious Bull Market

Wednesday, August 10, 2016
By Paul Martin

By: Stefan Gleason
SilverSeek.com
Wednesday, August 10th

The silver bull is back. After five long, frustrating years of price smashes followed by one failed rally attempt after another, silver prices have decisively broken out to the upside.

The question facing precious metals investors now is: How sustainable is the uptrend?

A major breakout doesn’t necessarily portend any particular duration or price objective to follow. The silver market is notorious for producing price swings that befuddle forecasters. Nevertheless, the birth of a new cyclical bull market suggests the potential for a multi-year up move to come. Before it’s over, we are likely to see new all-time highs.

The good news for those not yet invested in silver is that even after the impressive rally so far in 2016, prices remain relatively depressed. Silver still trades at less than half its former high mark.

In order for silver to match its all-time high of around $49.50/oz, prices would have to advance another 130% from recent levels. A return on investment of more than double is a pretty good proposition. Such a return would likely best any gains from stocks, bonds, or other conventional financial assets.

But in the silver market, a doubling of prices is no big deal. This is a metal that went up 10x from 2003-2011. And First Majestic Silver (AG) CEO Keith Neumeyer stated his belief on the Money Metals podcast that this new silver bull will take the price from $13.50 to $135.

Indeed, the most explosive gains in the bull market that began this year may occur after silver breaks out to new record highs. From a technical standpoint, there is no telling how far silver prices could launch as prices will literally be in uncharted territory. Not only that, but silver would be breaking a double-top resistance level that stretches all the way back to January 1980, when silver spiked briefly to over $49/oz. A new high would mean 36+ years of accumulated selling pressure is no longer a factor.

The Rest…HERE

Leave a Reply

Happy Holidays! Revolution Radio is a 100% volunteer run site. We appreciate any holiday cheer you can spare this Christmas season. God bless!

Follow us on Twitter