Hi Ho, Silver!

Gold’s monetary sibling is not to be ignored. Silver’s technical and supply/demand factors strongly suggest silver will outperform gold. But what will China do?

The technical chart below is about as positive as it can get. It has broken out decisively above the post-covid four-year consolidation (the pecked line). Furthermore, rising moving averages in sequence not only confirm the silver bull market, but they are accelerating higher lending additional support to the price.

Other statistics are equally supportive. It’s just that gold is hogging the limelight, with central banks buying it furiously to get out of fiat dollars. But even if you dismiss silver as an industrial metal, what’s happening to gold is also happening to silver. Furthermore, those who have missed the gold story are likely to pile into silver as the metal that’s been left behind.

Before moving on to more technical factors, let’s remind ourselves about the fundamentals, and work out who or what is controlling the price.

Supply deficits and Chinese suppression