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The Bullish Picture of Gold and Silver

09 Feb
Gold and silver

The Bullish Picture of Gold and Silver

Gold Market Discussion

Just over two weeks ago gold broke through the $1,300 per ounce level.  At the time we described for you the technical picture for gold, writing, “Gold’s bullish outlook is also confirmed by a look at the charts.  This week gold’s closely watched 50-day moving average broke above its 200-day moving average.  This ‘crossover’ is a widely regarded bullish indicator.”

Gold has had no difficulty staying above $1,300 since then, closing in New York on Friday at $1,318.

Now a similar technical picture is developing in the silver market.  Silver’s 50-day moving average turned up sharply about three months ago.  Now it is within just a few cents of moving above its own 200-day moving average.  As with gold, this crossover is taken by chart-watchers to be an important bullish indicator.

It has been more than three years since the last time silver’s 50-day moving average broke above the longer-term average, and in fact it was a technical event that heralded a powerful move higher in silver.  

In the space of just a few months from its 2016 crossover, silver climbed from below $15 to over $23 dollars per ounce.  

We think the economic background, the fundamentals that impact the dollar, are much more bullish now that they were three years ago!

Those fundamentals include Federal Reserve policy confusion, years of unassimilated money printing, obvious turmoil in the stock markets, and rising geopolitical temperatures.  

The socialist juggernaut that has been unleashed in this country looks to us to be unstoppable as well.  It should be kept front and center in your financial planning.  The only thing it can deliver is poverty… and much, much higher gold and silver prices.