Silver is breaking out. Its strength is no accident. The US is running a structural deficit north of 6% of GDP in a full-employment economy. The bond market has absorbed the pain so far, but pressure is building. Investors are starting to look for insurance. Silver is one of the cleanest ways to play the dollar’s long-term debasement.
The metal is trading well above its 200-day moving average. The US$31.50-32.00 zone now acts as solid support. Any pullback into that range is likely to be short-lived.
Silver doesn’t move in straight lines. It runs, consolidates, then runs again, usually in 50–90 day cycles. The current setup fits that rhythm.
The gold-to-silver ratio is still near 100x. Historically, the average is closer to 60-70x. That gives silver more room to catch up. Traders can short gold and go long silver to play that mean reversion. Or simply buy silver outright and short the dollar. ETF inflows into silver have picked up, showing broader market interest.
The main risk? A sudden shift in Fed tone or falling inflation expectations. But that seems unlikely near term.
Silver isn’t just a trade. It’s a message. A hedge against fiscal irresponsibility and the cost of kicking the can too far.
The metal is trading well above its 200-day moving average. The US$31.50-32.00 zone now acts as solid support. Any pullback into that range is likely to be short-lived.
Silver doesn’t move in straight lines. It runs, consolidates, then runs again, usually in 50–90 day cycles. The current setup fits that rhythm.
The gold-to-silver ratio is still near 100x. Historically, the average is closer to 60-70x. That gives silver more room to catch up. Traders can short gold and go long silver to play that mean reversion. Or simply buy silver outright and short the dollar. ETF inflows into silver have picked up, showing broader market interest.
The main risk? A sudden shift in Fed tone or falling inflation expectations. But that seems unlikely near term.
Silver isn’t just a trade. It’s a message. A hedge against fiscal irresponsibility and the cost of kicking the can too far.
Note
The forecasts provided herein are intended for informational purposes only and should not be construed as guarantees of future performance. This is an example only to enhance a consumer's understanding of the strategy being described above and is not to be taken as Blueberry Markets providing personal advice.
The Blueberry Team
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.