It has been a wild month, pretty much across the board. The stock market has been volatile along with the economy and consumer sentiment. The end results are uncertainty and downward pressure. But silver is ready to shine brightly, write Mary Anne and Pamela Aden, editors of The Aden Forecast.
Stocks are now very vulnerable. A Dow Theory bear market confirm was recently triggered and the market is looking toppy and/or like it’s already on the way down. This is still premature. But if stocks do head lower, this will probably coincide with a weak economy and all of the pieces of the puzzle will be in place, signaling stagflation is likely coming downstream.
But silver has been holding firm. It has strong support at $31.50 and it has now surpassed its February high near $33.45. If silver stays above it, we could see the metal zip up to its October high near $35.
You can see the strength building in this chart. Once silver breaks out above $35, it'll be ready to soar to its old high level near $50.
Plus, you can see silver is bottoming versus gold on the lower chart. It looks like a springboard ready to flip up. This would mean silver is outperforming gold, thereby confirming a major bottom base, with an open upside.
We recommend keeping silver.
