Silver is the fast horse of the precious metals. Its ‘retail gold’ because $100 gets a retail investor a fat slug of it where as $100 of gold is a fleck.
When the FOMO is strong Silver out performs Gold.
You can see this at work from the back to back performance of Gold and Silver over 5 years.
You can play with your start point but anyway you do you can see the correlation. The outperformance and now the resync between the two.
I predicted this is previous articles. Everything was going to plan then the US v Iran war seemed to break the upward trend for the both.
As Gold goes, so does Silver. Its my expectation that Gold will not shoot up again in line with the previous Boom/Bubble and that at best we will be in a sideways consolidation.
However it could well fall from here while the hope of another vertical is very unlikely indeed. My guess a bottom around $50/$60 is not unlikely but that we are not going back to levels where this rally began.
US political instability will put a bottom in on any fall coming up but if there are no system shocks Gold and Silver are unlikely to start on a new boom bubble anytime soon.
However there will be many more and frequent, to come, so the game now is to catch the next one, because there is always another one coming.
My favourite prospect is copper, so that is one to watch for the birth of a fabulous vertical.
Oh… hello!