Silver Fires Back: Silver Penetrates $19, Price At Multi-Year Highs

Silver is on the move again this week, and we’ve just taken out the $19 U.S. dollar price! Here are the details…

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UPDATE:

Silver did not stop at $19.00:

We have since moved as high as $19.24.

With a gold price of $1,555 and a silver price of $19.20, I’m calculating a real-time gold to silver ratio at 80.9!

In my opinion, the GSR has a long-way to fall even to revert to the mean of just the last few years:

We’ve blown through the “resistance” of the major moving averages in the ratio, and that’s adding to the bullish case for silver.

A friend just asked me, “what is the exact trigger for this move?”, and after some back-and-forth, I showed him the GSR and said this:

let me be clear: what you are seeing is the cartel being forced to back-off somewhat because they have been extra-brutal in smashing price since late 2016 and espeically since 2017 and on…don’t get caught thinking in the mainstream way…this is the cartel having to back-off…
Yes, I left it exactly how I sent that to him, spelling errors and all, only I’ve bolded it here, but I sent it that way as it was an informal conversation.

END OF UPDATE
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Silver is on the move again this week.

Why?

I explained it in my most recent Friday wrap, and it basically comes down to this:

Everybody has an explanation about what’s been going on, but I do think the answer is really simple in that the cartel is no longer able to contain the natural, fundamental factors that are taking over the market.

In other words, the cartel is barely able to contain silver right now due to overwhelming market forces which are bringing on the fear trade, big time.

Fundamental factors are also bringing about people and nations putting on a hedge against uncertainty.

Others are putting on an inflation hedge.

Still others are putting on a speculative bet, so I’d be looking for more whipsawing volatility coming up.

Is that all that’s going on because of the fundamental factors?

No way.

People are also looking to preserve their wealth in the coming currency debasements, cash grabs and tax hikes, whereas the “you can’t take it with you” aspect of real estate means that if taxes get too expensive and no longer affordable, then  there is no choice other than liquidation, one way or another.

But wait!

There’s more!

People are also buying silver because it is insurance.

Others just want privacy.

Total privacy.

Silver is to gold as gold is to silver as silver is to gold.

Those fundamental factors will only get stronger in the coming days, weeks, months and years.

Let’s have a look at the minute silver crossed $19 per ounce:

We haven’t seen a 19-handle in quite some time.

In fact, it’s been years:

You have to go back to 2016 to find a 19-handle.

That’s a pretty sweet move.

Especially considering the US dollar:

President Trump will not be pleased about that!

On the 15-minute chart, we see silver outperforming gold nicely:

Which is exactly what we have been expecting silver to do.

Is silver done with its move here at $19 per ounce?

I think the move is really only just beginning.

Silver has much catching-up to do now.

The fundamentals are taking over.

Cartel will be overwhelmed.

They likely already are.

Silver’s on the move.

At multi-year highs.

The next stop?

Let’s see.

Indeed.

Yes.

Stack accordingly…

– Half Dollar


 

About the Author

U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.

Paul’s free book Gold & Silver 2.0: Tales from the Crypto can be found in the usual places like Amazon, Apple iBooks & Google Play, or online at PaulEberhart.com. Paul’s Twitter is @Paul_Eberhart.

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