Silver Bear Market Looks to Be Over…or Not?

Since the Brexit vote, we have seen some interesting price action unfold with various assets. With global/Euroland uncertainty, investors have been flocking to what they feel are the safe havens until things get sorted out overseas.

Typically, precious metals and the Dollar Index move in opposite directions. This means that if the dollar rises, metals fall in value. But since the Brexit vote, investors are piling their money into what they feel is the safe place for them to store capital. These are: US Dollars, Silver, Gold, Mining Stocks, Bonds and even US equities.

The good news for silver and the price of gold is that no matter what happens to the US Dollar (up or down), investors will continue to invest in these metals. Eventually, the US Dollar will have some pullback — but this will only help lift precious metals higher.

Gold Miners Bullish Percent Index – Many Miners With Bullish Chart Patterns

After many years precious metals miners are finally breaking out and making their first bull market leg.

The following chart shows the multi-year downtrend, the recent breakout, and subsequent rally. Indeed, an awesome and exciting time!

Silver Weekly Trend Chart

Silver has recently broken a previous significant high, which is the first sign of strength for the white metal. I have high hopes where silver will be trading by 2020, which is between the $74 and $99 per ounce.

Silver Analysis Conclusion

The bull market in silver, gold, and miners has really JUST begun. Sure, many stocks have exploded in value already up 200% to 600%. However, in the grand scheme of things, prices will continue to rise – even though many gold miners have not yet left the station. This means that if you buy a basket of stocks, you stand to do very well in the coming year or three.

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Chris Vermeulen