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Silver is on a parabolic rally. Retail investors are driving the move, much like they did during the recent gold surge – only this time, they’re turning to silver because its price tag feels more accessible. A 1 oz slug of silver is a lovely thing, and these days $30, $40 or even $60 doesn’t buy you a whole lot of lovely. Gold, however, at $4,000 a lump, is a far bigger stretch.
Retail participation is what makes silver the fast horse – the spicy precious metal. Pretty much anyone can afford a bag of silver, whereas you need to be wealthy to do the same with gold.
So silver to $100 has been my call for a very long time, because, for one, $100 is a joyous retail-magnet price for any asset. When commodities boom, they boom and bubble, and silver has done it many times. Before crypto, commodities were the speculators’ dystopian playground, and now we’ve entered the new commodities “supercycle,” those days are back.
As global anxiety about economic rivalry intensifies, gold will remain strong – and silver will follow. Meanwhile, the AI “supercycle” is coming, ready to push metals even higher as it devours all hard and energy commodities.
Silver may boom, bubble and crash, but this is only the beginning of the great hard commodity repricing.
So where now for silver?
The silver chart, with two possible trajectories
Credit: ADVFN
The black line shows what happens if we’re in a bubble. The orange line shows what unfolds if we’re in a repricing. It all depends on retail. If they go in boots-and-all, silver will bubble and then bust. It won’t take long to find out.
I’m more inclined toward the orange trajectory, but when parabolic moves begin, you simply have to focus and ride the wave.
Remember: nothing goes up in a straight line forever. There is always a top. That’s what I’ll be telling myself. I’ll also be chanting the mantra, “Don’t confuse your brains with a bubble.” Anyone can make a lot of money in a boom and bubble – but only the clever ones get to keep it.
I drew this here in September:
The silver chart with my doodles from September
Credit: ADVFN
That’s another solid roadmap – and you must admit, it’s a pretty good call for something written three months ago.
$80–$100, here we come. And when they start screaming “$200 next!” that might be the time to consider leaving the casino.