Silver’s 40-Year Breakout

Gold has topped $3,500… and silver is finally moving along for the ride.

The metal topped $40 on Friday, its highest close since 2011.

That’s 14 years of sideways trading.

Even though silver has strong industrial demand on top of a historical use case as money. And on August 28, silver was listed among the Trump administration’s classification as a “critical metal” for the US economy.

We’re writing about silver today for a different reason.

One key technical chart suggests that the breakout is the start of what could be a multi-year rally, because it’s a chart 40 years in the making:

Turn Your Images On

Silver isn’t just at an 11-year high, it’s showing a technical pattern that suggests a further break higher
(Source: Kinesis)

We generally use technical indicators to determine short-term momentum in specific stocks are sectors. Today’s silver breakout reveals a longer term trend.

Silver first reached a peak of $50 per ounce in 1980. Then, it languished and hit $48 in 2011 during the last peak.

After adjusting for inflation, silver still needs to soar closer to $200 per ounce to make all-time highs.

With a cup-and-handle breakout now in the cards, it’s possible that in the next few years, the metal could do just that. In the shorter term? It could jump to $50 per ounce.

~ Addison

P.S. Grey Swan Live! returns at a special new time on Thursday at 2:00 P.M. ET. We’ve gotten feedback suggesting it would be more polite to host GSLive! at 2pm Eastern Time, 11am on the West Coast. More civilized for our members in California. Cheers.

We’ll be joined by Ian King, looking at the latest moves in the cryptocurrency market – including the rise of Ethereum as the rally in bitcoin takes a pause.

Ian’s recent predictions include a new event that could trigger a new crypto boom, sending the market cap of the space to $8.5 trillion by 2030 – as well as the latest on President Trump’s plans for a Strategic Bitcoin Reserve.

All that and Ian will cover some of the top token opportunities in the cryptocurrency space as this asset class continues to push higher.

If you have any questions for us about the market, send them our way now to: feedback@greyswanfraternity.com.

Gold has topped $3,500… and silver is finally moving along for the ride.

The metal topped $40 on Friday, its highest close since 2011.

That’s 14 years of sideways trading.

We’re writing about silver today for a different reason.

One key technical chart suggests that the breakout is the start of what could be a multi-year rally, because it’s a chart 40 years in the making:

Turn Your Images On

Silver isn’t just at an 11-year high, it’s showing a technical pattern that suggests a further break higher
(Source: Kinesis)

We generally use technical indicators to determine short-term momentum in specific stocks are sectors. Today’s silver breakout reveals a longer term trend.

Silver first reached a peak of $50 per ounce in 1980. Then, it languished and hit $48 in 2011 during the last peak.

After adjusting for inflation, silver still needs to soar closer to $200 per ounce to make all-time highs.

With a cup-and-handle breakout now in the cards, it’s possible that in the next few years, the metal could do just that. In the shorter term? It could jump to $50 per ounce.

~ Addison

We’ll be joined by Ian King, looking at the latest moves in the cryptocurrency market – including the rise of Ethereum as the rally in bitcoin takes a pause.

All that and Ian will cover some of the top token opportunities in the cryptocurrency space as this asset class continues to push higher.

If you have any questions for us about the market, send them our way now to: feedback@greyswanfraternity.com.

Regardless of anyone’s personal opinion on Trump, it’s clear that the international community is translating his “Putting America First” agenda as something more like “Every Man for Himself.” That could have a profound impact down the line, not just for our future trade prospects, but for the health of the economy and the U.S. dollar at large (which is still the world’s dominant reserve currency, for now).

At the same time, this is all very bullish for gold, as central banks are likely to continue buying for years to come. In this kind of situation, gold hitting $4,300 and continuing to rise higher was a foregone conclusion, and it’s clear that Trump’s agenda is locked in and unlikely to change.

Shares of regional banks and even investment bank Jefferies were hammered Thursday after fresh revelations from Zions Bancorporation and Western Alliance Bancorp.

Zions dropped more than 13%, Western Alliance fell 10%, and the SPDR S&P Regional Banking ETF (KRE) plunged over 6%, with all but one member ending the session in the red. It’s not the size of the losses — it’s the pattern that’s unsettling, in what are ongoing ripple effects from the banking crisis that rocked regional banks in early 2023.

Yesterday, Zions Bancorporation and Western Alliance Bank dropped 13% and 10% respectively, dragging the S&P 500 down with them.

In pre-market trade this morning, the broader banking sector also got whacked. JP Morgan was down 1.5%, while Citi fell 1.9% and Bank of America was down 2.9%. In Europe, meanwhile, the regional Stoxx Banking Index fell almost 3%.

The Federal Reserve stopped tracking “unrealized losses” at regional banks in 2022. But occasionally, a snippet of data will come to light, like this piece from the FDIC earlier this year.

History’s “golden” rule will soon apply again.

Shares of regional banks and even investment bank Jefferies were hammered Thursday after fresh revelations from Zions Bancorporation and Western Alliance Bancorp.

Yesterday, Zions Bancorporation and Western Alliance Bank dropped 13% and 10% respectively, dragging the S&P 500 down with them.

The Federal Reserve stopped tracking “unrealized losses” at regional banks in 2022. But occasionally, a snippet of data will come to light, like this piece from the FDIC earlier this year.

History’s “golden” rule will soon apply again.