Since July 3d, 2024, when silver cleared short term resistance, silver’s chart confirmed its secular cup and handle reversal, by nature a strongly bullish pattern. It qualifies as one of the most bullish setups ever.
RELATED – Will Silver Ever Hit $50 An Once? Here Is The Answer And Must-See Charts.
One thing is clear – this chart pattern is immensely powerful.
What is not clear, however, is when silver will set new all-time highs.
While a test of current ATH is likely to happen late 2024 or the first half of 2025, it remains unclear if/when/how silver will break out to new ATH.
We had a theory about this, and explained it here: Can The Silver Price Rise To $100?
Silver chart pattern
While the intellectual part of solving the question ‘when will silver hit $50‘ and ‘will silver ever hit $100‘ is challenging (hence fun to do), the bigger picture point is the current silver chart setup.
In order to see and appreciate the power of silver, one has to zoom out.
Remember – short term chart views create 100% noise in 100% of occurrences. Yet, the web is full of it, just scroll down to find that most of the ‘silver trade ideas‘ are short term oriented.
As seen on below chart, a giant cup and handle formation is unfolding on the silver chart. The current outcome is consistent without 2024 silver prediction written 9 months ago!
Silver’s next big move
Investors are interested in silver’s next big move.
While it’s a valid question, the right question to ask which timeframe is the relevant one.
Looking at the long term setup of silver, a move to $50 is unavoidable. But does it really matter if it happens during the summer of 2024, around year-end or around summer of 2025?
What truly matters is the long term pattern and trend.
We wrote a very insightful timeline analysis on silver, it’s available on Linkedin. Exceptionally, we revealed some insights that are typically reserved for premium members in our gold & silver research reports.
READ – The Most Insightful Silver Chart Analysis You Will Ever Read
That said, we derived specific dates that are likely going to be decisive in how silver resolves, presumably to the upside, given the current long term chart setup.
As we approach the decisive dates of November 8th, 2024, and January 21st, 2025, we will continue to monitor the market closely. This scenario is not a forecast but a way to illustrate our methodology.
Note that the dates we derived will be in a US Fed rate cutting period. This nicely lines up with historically important dynamics in the silver market as explained below:
#Silver returned average +332% in last three Fed rate cutting cycles pic.twitter.com/WJtzZuxLuR
— Peter Krauth July 10, 2024
Silver: price, time, both, none?
While the investor community remains focused on silver price analysis, we believe timeline analysis is equally important. One of the ways to go about timeline analysis is thinking in terms of cycles; the other method is calculating decisive dates.
We believe the current cycle has potentially some more upside potential, we shared a detailed analysis in our gold & silver market report this week. Anyone who signs up can access it immediately:
RECOMMENDED (sign up first) – [Special Edition] Detailed Silver Analysis: Short Term Breakout Possible Or Not?
But the timeframe of the investor really is the only thing that matters. Looking at the long term silver pattern, the chart seems to suggest that timing is less crucial because the upside target of $48-50 is clear.
Long term investors should enjoy the silver ride, even though volatility is certainly going to pick up, around 32.70 USD/oz and certainly in case silver would succeed in moving a little higher (closer to 40 USD/oz). This area will be filled of volatile price action.
The question is (a) are you able to stomach volatility (b) are you in for the short or long term?
Sign up to access a very detailed and comprehensive silver analysis, available in our research area: a chartbook with 25 distinct and relevant chart influencing the price of silver.