Wednesday, August 31, 2016 4:00 AM EDT
Let’s get things straight when it comes to silver (and gold): its outlook is not looking good. The fact that the 2016 silver price rally stalled exactly at the 2008 highs which happens to coincide with a secular bear market trend line is really not good.
We strongly believe in the value of gold and silver, but we also learned – the hard way – to look with an unbiased view to unfolding trends through chart patterns. When looking objectively to the silver price chart, we read a strong message: silver’s bull market is not there yet. In other words, 2016 will not be the year in which the bear market evolves into a bull market, at least not from a secular perspective. Somehow, we still expect silver’s new bull market to start in 2017, but that will probably not happen in the first months of 2017, at least not based on the unfolding trend on the chart.
The path of least resistance is down, in particular towards secular support which comes in at $14 right now, but, when the price of silver has fallen until that point, it will come in around $15.
As said before, our thesis is based on rising yields, as explained in this article Gold Price Set To Fall To At Least $1250 In The 2nd Half Of 2016. Intermarket dynamics are least visible to investors, but it’s the epicenter of all trends in markets. Right now, the most likely scenario is that yields will start rising, resulting in new trends in key asset prices like stocks, gold, commodities, currencies. Silver will not fare will with rising yields.
(Click on image to enlarge)
Disclaimer: InvestingHaven.com makes every effort to ensure that the information ...
more
Disclaimer: InvestingHaven.com makes every effort to ensure that the information provided is complete, correct, accurate and updated.In spite of these efforts, errors may occur in the information provided.If the information provided contains errors or if certain information is not available on or via the site, InvestingHaven.com will make every effort to rectify the situation as soon as possible. However, InvestingHaven.com cannot be held liable for direct or indirect damages resulting from the use of the information on this site. If you notice any errors in the information provided via the site, please contact the manager of the site.
Moreover, the views expressed in the articles (posts) on this website are the ones from the authors and are for information only. It is not intended as an offer, invitation, or solicitation to buy or sell any of any security or asset described. Nor the website manager nor the authors do accept any liability whatsoever for any direct or consequential loss arising from the use of their content. Please consult a qualified financial advisor before making investments. The information on this website and in the articles (posts) is believed to be reliable , but the authors do not make any representations as to its accuracy or completeness.
The content of the site (including links) may be adjusted, changed or expanded at any time without notice. InvestingHaven.com does not guarantee the proper functioning of the website and cannot be held liable in any way for the improper functioning or temporary (un)availability of the website or for any form of damage, direct or indirect, which may be the result of access to or use of the website.
InvestingHaven.com cannot be held liable under any circumstances by anyone, directly or indirectly, in any specific or other way, for damages resulting from the use of this site or any other site connected by means of links or hyperlinks, including, without limitation, any losses, interruptions of work, damage to programmes or other information on the computer system or to equipment, software or other items owned by the user.
less
How did you like this article? Let us know so we can better customize your reading experience.