Silver On Its Way to $50

Silver is in a major uptrend that appears headed for $50. It has been difficult buying silver as it hardly pulls back on its way higher. This is truly exceptional behavior for a commodity such as this.


As we witness history in the making, how do you trade it at this point? If you missed any of the previous breakouts, silver hasn’t offered much of a pullback at all.

If you are an aggressive trader, if you get a slight pullback, it’s worth attempting a purchase with a stop in place two bars back. If you are wrong, take the loss and view it as an opportunity to establish a position at a lower price before silver regroups and heads higher.

If you are more cautious, perhaps this runaway train isn’t for you. You could wait for at least sideways action as it exhibited not long ago, but this may not happen. What seems more likely at this point is that silver shoots to $50 and maybe even higher before we start experiencing some serious gyrations, as always happens with assets and securities in hyperbolic action.

Whatever you do, treat this as a trade and don’t get married to your position. Just try to make some money on the way up.

Below is a daily chart of the SLV, a highly liquid ETF that tracks the price of silver. I've included a Keltner Channel with my own flavor. As you can see, silver is trading well above the bands, indicating exceptional strength. The green arrow is the most recent clean breakout which happened just after I posted an alert for silver in February.