Technical chart shows silver price about to leap towards $100 an ounce
Peter Cooper

If the double bottom established by gold last year is good for the gold price it is outstandingly good news for silver.

The latest technical chart from guru Clive Maund establishes a clear upward bounce towards $100 an ounce silver is in prospect.

He comments: ‘On this chart we see that, despite the severity of the reaction of the past three years, silver never broke down from its long-term uptrend, which now looks set to reassert itself with a vengeance after a fine base pattern has formed at a classic juncture, in a zone of strong support just above the support line of the long-term uptrend.

Monster uptrend

‘Volume indicators are positive, relative to price, and everything is in place for a monster uptrend to begin, with the giant blue arrow drawn on the chart designed to assist those of you with limited powers of imagination in grasping its potential magnitude’…

Subscribers to our monthly newsletter got the strongest possible tip to buy silver in our New Year issue and our leveraged investment ideas have already delivered great returns so far. But this is just the beginning. The next edition will revisit gold and silver investments and how to gear up for maximum gains without taking on any debt (subscribe here).

We think silver and gold, in that order, are the investment opportunity of the year. Gold hit a fresh six month high of $1,390 at the time of writing on the uncertainty surrounding the referendum in Crimea, although with a 95.5 per cent endorsement of a Russian takeover one might have expected uncertainty to fall on the result.

Sound money

Nonetheless, the geopolitics of Ukraine is nothing by comparison to the many other bullish factors supporting precious metals this year. The flight to sound money in a world of money printing continues. And we can see a US stock market correction on the near horizon that will keep the Fed’s QE program alive and well into the future.

Meanwhile the reversal of last year’s outflow of money from precious metals has barely started and the outperformance of silver versus gold in an uptrend is an established fact of life because silver reserves are tiny by comparison to gold.

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