Silver is on a parabolic rally. The retail investor is behind it and that is driven by the Gold raly before it where retail heads for Silver because its price tag is more attractive. A 1oz 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 $4000 a lump is a lot bigger stretch.
Retail is what makes Silver the fast horse, the spicy precious metal. Pretty much anyone can afford a sack of Silver, where as 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 a start $100 is a joyous retail magnet of a price for any asset. When commodities boom the boom and bubble and silver has done it many times. Before Crypto, commodities were the speculators dystopic playground and now we have entered the new commodities ‘supercycle’ those days are back.
While the world get ever more anxious about its competitors, Gold will ride high and Silver will follow come coming up the real to boost metals further is the AI ‘supercycle’ set to goggle up all hard and energy commodities.
Silver may boom and bubble and crash, but this is only the beginning of the hard commodity repricing.
So where ow for Silver?
The black line is what will happen if we are now in a bubble. The orange line is what will unfold if we are in a repricing. It depends on retail. If they go boots in, silver will bubble bust. It wont take long to find out.
I’m more expecting the orange trajectory but when parabolic moves kick off to simply have to focus and ride the wave.
Remember nothing goes up forever in a straight line forever. There is a top. That’s what I will be telling myself. I will also be mantra-ing ‘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.
That’s another nice roadmap as you must admit it’s a pretty good call for 3 months ago.
$80-$100 here we come and whenthey are screaming ‘$200 next’ maybe that will be a time to consider leaving the casino.