The silver market is preparing for a breakout after the ultimate ‘risk on’ indicator started breaking out. In this article, we discuss this hidden indicator and its importance to the entire silver market.
READ – Silver Price Prediction.
We look at the long term silver price chart (super bullish), and supplement this with the silver map adjusted for CPI (super bullish) and our hidden silver indicator (super bullish).
Did we say we believe the silver market is super bullish? Yes, we did, in this article published a week ago: Silver Hits Record Highs in Most Global Currencies…. Silver in USD is next!
Silver card
First things first: the silver price chart pattern, unedited.
Below you will find the spot silver chart over 20 years.
While not as powerful as the 50-year silver price chart, it clearly shows a very bullish chart pattern!
- It is a bullish chart pattern.
- Its length makes it extremely powerful.
What is the message of this silver card structure? ATH will be here soon. It’s not a matter of IF, it’s a matter of WHEN silver will reach $50.
Another silver card
In case the silver chart above isn’t convincing enough, we share this fascinating chart from a top precious metals analyst Stoeferle are after on X:
If you are looking for an ultra bullish #SILVER chart, we’ve got it for you: According to Shadowstats’ inflation-adjusted calculations, the all-time high for silver would be an incredible $1,800 per ounce. 😉 pic.twitter.com/4hdvh7aFKh
— Ronnie Stoeferle (@RonStoeferle) October 16, 2024
There’s no doubt about it: the aforementioned silver chart suggests that silver is vastly undervalued.
Add to this the growing imbalance between supply and demand, as explained in our article on the silver squeeze, based on many data points, and you have confirmation of silver’s undervaluation.
So if we look at silver from three completely different angles, we see a similar outcome: Silver is primed for an upward revision because it is massively undervalued around $30.
Silver hidden indicator breakout
This is the ultimate indicator that confirms that strong bullish momentum is about to hit the silver market.
The ratio of silver miners to junior silver miners, the ultimate RISK indicator for the silver market, breaks out!
What is so special about this relationship?
Very simple: it is a RISK ON indicator when it rises.
Why?
- Junior silver miners are the highest risk segment of the entire silver market (if we break down the silver market into components such as silver bullion, senior silver miners, and junior silver miners).
- By definition, the segment with the highest risk will only increase if the market’s risk appetite increases significantly and structurally!
- To convert the above dynamics into an unbiased indicator, it is necessary to look at junior silver miners versus senior silver miners.
As you can see in the chart below, the ratio of senior to junior silver miners is now breaking through, after a multi-year consolidation. Moreover, this multi-year consolidation is in the form of a bullish reversal.
How much more confirmation does one need to know that the silver market is about to turn super bullish?
Silver market will soon be on fire
Yes, indeed, all data points are now aligned. It’s as if the stars have aligned and the silver market’s big moment could begin soon:
- 50 year silver price chart – insanely bullish chart structure.
- 20 year silver price chart – very bullish chart structure.
- Silver adjusted for CPI – silver is massively undervalued.
- The supply contraction on the physical silver market is persistent (and growing).
- Breakout of silver RISK ON indicator is underway.
- Anecdotally, Wall Street Silver is in overdrive.
The silver market will soon be on fire, the data shows.
Are you listening?