This is the critical point in the cycle. From this point debt and debt-based assets get destroyed while silver prices see some real stellar increases. This point cannot be stressed enough, since debt or credit is what this current world is built on.
Silver fell this past week, despite as we noted a weaker than expected jobs report and a weaker US$ Index. Silver lost 2.1% as it continued to test $26.50 support. Further support can be seen to $26, but under that level the current rally becomes more questionable.
It’s no surprise that $30 is resistance as that was the high back in February 2021 ($30.35). Our expectations of $39/$40 targets remain, once we get past the February 2024 high. The breakout over $26/$26.50 suggests that target.
Investors will be forced to reckon with the fact that there is just a fraction of the physical silver in existence that they believed, which will lead to a scramble for physical silver while paper silver products sink in value.
Silver enjoyed another solid week up, gaining 2.8%. Silver is now up 19.7% in 2024. Silver is the poor man’s gold and, with gold soaring to over $2,400, many are instead shifting to silver.
With a close over $28 this past week, silver has now successfully broken out: first over $26, then over $27.50, the early 2022 high. Remaining is a breakout over the February 2021 high of $30.35.
