{"id":164191,"date":"2020-01-30T20:16:01","date_gmt":"2020-01-31T01:16:01","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=164191"},"modified":"2020-01-30T20:16:01","modified_gmt":"2020-01-31T01:16:01","slug":"silver-prepares-for-next-leg-higher","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/01\/silver-prepares-for-next-leg-higher\/","title":{"rendered":"Silver Prepares For Next Leg Higher"},"content":{"rendered":"
January 30, 2020<\/div>
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By TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

Following up on some of our recent metals research, we wanted to alert our friends and followers to the incredible opportunity that still exists in Silver.\u00a0 We\u2019ve highlighted two of our more recent articles for reference and review, below.\u00a0 Silver continues to be one of the most incredible opportunities for 2020 and Silver Miners (SIL) could explode to the upside as the price of Silver rallies to close the gap between the Gold to Silver ratio.<\/p>\n

Our researchers believe Silver is currently undervalued, compared to Gold, by at least 240%.\u00a0 Historically, the Gold to Silver ratio averages a 10+ year rotational range of between 63 to 67.\u00a0 This means that through both peaks and troughs, ranging from the high 80s to mid-90s to the low 30s to mid-40s, on average the middle price range level for this ratio is near 65.\u00a0 Currently, this Gold to Silver ratio is 88.4.<\/p>\n

Gold is currently trading at $1590 \u2013 just below the recent peak near $1613.\u00a0 We believe that Gold will continue to rally higher, breaking the $1613 level, and continue higher targeting the $1750 level over the next few months.\u00a0 Eventually, within 2020, we believe Gold will continue to rally higher breaking the $2100 price level.<\/p>\n

This continued upside price action in Gold, while Silver has really yet to see any massive upside price movement, continues to create a massive price disparity between Gold and Silver \u2013 which is highlighted in the Gold to Silver ratio.\u00a0 As Gold rallies, Silver must begin to move dramatically higher in order to close this price disparity between the value of Gold to Silver.\u00a0 Historically, we believe the rally in Silver will force the Gold to Silver Ratio to fall to near the 65 level.\u00a0 This would represent a massive 70% to 120%+ rally in the price of silver \u2013 targeting $24.50 to 32.50.<\/p>\n

Gold and Silver Ratio Weekly Chart<\/h3>\n

If the Gold to Silver Ratio falls below the 65 level and targets lower ratios, as has happened in the past, then Silver may rally as high as $45 to $55 per ounce while Gold stays below $1800. \u00a0If Gold does rally above $2000, as we expect, the true potential for Silver experiencing a major price reversion event could be as high as $60+ per ounce.<\/p>

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Please take a minute to read some of our previous research posts regarding the metals markets here:<\/p>\n

January 14, 2020:<\/strong> SILVER TRADERS BIG TREND ANALYSIS \u2013 PART II<\/a><\/p>\n

December 30, 2019:<\/strong> METALS & MINERS PREPARE FOR AN EARLY 2020 LIFTOFF<\/a><\/p>\n

Daily Price Of Silver Chart<\/h3>\n

This Daily Silver chart highlights what we believe will be the next move higher in Silver.\u00a0 The next upside price advance should target the $21 to $23 level as Silver attempts to revalue compared to the price of Gold.\u00a0 Near this $23 level, Silver should stall briefly before attempting to move much higher.\u00a0 The reality is that once this revaluation event begins to take place in Silver, we believe it will prompt an extended price rally that could last well into 2023-2024.<\/p>\n

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Price of Silver Weekly Chart<\/h3>\n

This Weekly Silver chart highlights our research team\u2019s expectations related to Silver over the next 6+ months.\u00a0 At first, we believe the $21 to $23 level will become the target.\u00a0 Then, a short period of price rotation will find support near $21 before another upside price leg pushes silver above $24.\u00a0 Remember, if Gold continues to rally higher, these expectations could extend 5% to 10% in size and scale.<\/p>\n

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Silver Miners Sector ETF \u2013 Weekly Chart<\/h3>\n

Another key component of this move is the opportunity in Silver Miners.\u00a0 This SIL Weekly chart highlights the real potential for a 20% to 30% upside price rally related to the expected price revaluation\/reversion event we have been describing for Silver.\u00a0 Miners are an excellent correlative component for skilled traders expecting a move like this in the metals market.<\/p>\n

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Learn how we can help you find and execute better trades and turn the extreme volatility into solid profits.\u00a0 Read our research and see what our research team has been predicting over the past few months.\u00a0 We dedicate our efforts to helping you find great trades and helping you protect your assets.<\/p>\n

oin my\u00a0ETF Trade Alert Newsletter \u2013 Wealth Building Newsletter<\/strong>\u00a0if you like what you read here and ride my coattails as I navigate these financial markets and build wealth while others lose nearly everything they own.<\/p>\n

Chris Vermeulen
\nTheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

NOTICE: Our free research does not constitute a trade recommendation or solicitation for our readers to take any action regarding this research.\u00a0 It is provided for educational purposes only.\u00a0 Our research team produces these research articles to share information with our followers\/readers in an effort to try to keep you well informed.\u00a0 Visit our web site to learn how to take advantage of our members-only research and trading signals.<\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

By TheTechnicalTraders.com Following up on some of our recent metals research, we wanted to alert our friends and followers to the incredible opportunity that still exists in Silver.\u00a0 We\u2019ve highlighted two of our more recent articles for reference and review, below.\u00a0 Silver continues to be one of the most incredible opportunities for 2020 and Silver […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-164191","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/164191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=164191"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/164191\/revisions"}],"predecessor-version":[{"id":164192,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/164191\/revisions\/164192"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=164191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=164191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=164191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}