Wall Street Smart Money Is Accumulating Physical Silver Ahead of New Basel III Regulations And Price Explosion to $44 An Ounce
The comments below are an edited and abridged synopsis of an article by Chris Vermeulen
Gold and silver seem to have stalled after a solid upside price trend in April and May 2021. Looking at the longer-term weekly silver chart, it looks as if silver is ready for a big move higher.
The second half of 2021 will welcome Basel III and a renewed focus by the Fed (and global central banks) on containing inflationary aspects of the recovering global economy while also attempting to support growth objectives. Precious metals have shown a unique accumulation phase over the past 12 months; that may lead to a big upside rally when silver breaches the $28.50 level.
Price modeling suggests a continued bullish trend on the monthly silver chart. The peak is likely near $40 to $44 around December 2021.
Over the next few weeks, silver will attempt to consolidate below $28.50 as the markets react to the FOMC announcements. Once the markets adjust to inflationary concerns the Fed and global central banks need to address them, as well as future expectations related to forward monetary policies. Vermeulen believes silver will top $28.50 sometime in July, and then move dramatically higher.
The next 2 to 3+ years will be full of big price trends to take advantage of. This setup in silver suggests we are starting a multi-year bullish price rally in precious metals (similar to that of 2003 to 2007). If you have followed precious metals long enough, you understand that the biggest moves in gold and silver happened after the 2006/2007 stock market peak.
That means we are just starting to see an opportunity in the US stock market and precious metals related to volatility, trends and price rotations.