A New Bull Market in Silver!

Peter Krauth Peter Krauth

Peter Krauth

May 30th, 2024 Comments

Wow, it’s been some ride.

Over the past four years silver has tested $30 three times.

Silver Weekly Candles (Chart)

We’ve even seen silver reach new multi-decade highs in most major currencies.

Monthly Currency Prices - In May (Chart)

And until three months ago, silver was just moving sideways between $22 and $26.

Then BOOM!

It surged to $28 in April, pulled back to $26, then rocketed to $32 in the last three weeks.

1 Year Silver vs US Dollar per Oz (Chart)

Holdings in our silver stock portfolio have enjoyed an incredible ride. Most are up 70% to 120% since the late February low, with one gaining nearly 200%.

The $10 gain in silver from $22 to $32 is a massive 45%. A bull market is defined as a 20% gain, so we have clearly achieved that.

Like I said above: It’s a new bull market in silver.

I think there’s a lot more of this to come. And we are poised to benefit. But these gains have been so strong in such a short period, I’m inclined to turn a bit cautious now.

Don’t get me wrong. Silver at $30 is not the peak. If you’ve read my book, you know my ultimate target is $300 which I explain -- with backup. That would be a 10x return just in silver from here. In fact, I fully expect that $30 will become a new floor in the silver price.

But some market digestion of recent gains would make sense right now and would help propel silver prices higher in the second half of this year.

Nothing is foolproof, but one of the best indicators is the Bullish Percent Gold Miners Index. Yes, these are gold miners, but it’s the closest indicator we have for silver stocks.

Right now, it’s above 80, meaning 80% of gold miners in the index are trading in a bullish technical formation. That suggests it’s very overbought.

Gold Miners Bullish Percent (Chart)

When it trades below 30%, like in February, it’s extremely oversold.

Once we see that again and the index reverses higher, we’ll have a bull signal. In the meantime, I think it’s smart to stay cautious. I could be wrong.

Silver and silver stocks could power higher from here. But the technicals suggest we could see a pullback to correct overly bullish sentiment.

Peter Krauth

About the Author:

Peter Krauth is the author of the bestselling book The Great Silver Bull and publisher of the silver-focused investment newsletter Silver Stock Investor.