Silver, like many other markets, had a very decent rebound after the end of the recent panic. From the bottom it was a 36% increase. Importantly, buyers managed to pull prices above support, i.e. lows from 2018. This shows that their March violation was a bear trap. Over the past three weeks, volatility in the silver market has clearly decreased. What’s more, the fluctuations narrow down, which allowed us to draw a triangle. The current consolidation on silver may therefore prove to be the basis for initiating another upward move.
Silver in the long run also looks very positive from the fundamental side. It is generally strongly correlated with gold, while recently it has fallen significantly behind (gold-silver ratio > 100). This means that of these two metals, silver has much greater growth potential. The key is that precious metals do very well at negative real interest rates, and this environment will be provided by central banks (seeking to devalue debt) in the coming years.
