From ‘Dead Money’ to A Breakout: Silver’s Fortune Is about to Change

The comments below are an edited and abridged synopsis of an article by Kitco News

Silver’s fortune is about to change, with its fundamentals pointing to a breakout towards $35, said Jim Iuorio, TJM Institutional Services managing director.

From ‘Dead Money’ to A Breakout: Silver’s Fortune Is about to Change - BullionBuzz - Nick's Top Six
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“I’ve been long silver for quite a while, and it’s been a painful trade. Copper broke out of a pretty significant technical pattern last week, and I believe silver is following it,” Iuorio said.

Investors were trading silver as a precious metal, and this made it dead money, as the novelty of Bitcoin took money flows away from both gold and silver. But that perception is now changing.

“Silver has been trading with gold and has been dead money for about the last six, seven months. I believe the market was viewing it as a precious [metal] and trading it like a precious [metal]. The $2.5 trillion cryptocurrency market was attracting some of the speculative inflation hedge money. And it was leaving gold and silver for dead. I think that both of those things are going to change, but I think for silver, it is changing now,” he said.

Technical analysis shows that within one year, silver could move as high as $35. “Silver could easily trade back up to $35. Once the metal moved above $22, it opened great upside,” Iuorio said.

Iuorio is optimistic because of the market’s changing perception of the metal’s fundamentals. “Silver could easily be grouped in some of the green new deal commodities like copper. Silver is used in solar panels, electric conductivity, which is very, very important in the new green deal,” he said.

“I care when the market changes its focus and decides that silver’s going to be the flavour of the day, the month, the six-month period. And I believe that’s happening right now. And that’s what technical analysis tells me,” he noted. “The fundamental story is not as important as the fact that the market comes to this realization, and you just try to be ahead of it.”

Silver also plays well with the inflation narrative. Iuorio holds gold, silver, platinum, Bitcoin, ethereum and real estate as dollar hedges. “These to me are [the assets to hold] if things start to get really bad.”

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