Now that the silver price has broken through the important $18.50 level, will it reach $21 during this current rally? Silver was up 70 cents for the day (Monday). However, after Dallas, Fed President Kaplan announced today that the “Emergency Facilities” used to support the economy might be pulled back, the markets sold off from their highs.
This included Tesla, which briefly touched $1,795 about 15 minutes after the market opened, then closed at $1,497. I imagine many “unsophisticated” investors lost their lunch after Tesla’s stock price shed nearly $300 in just a few hours. Anyone crazy enough to trade a stock worth $1,500 a share has to be insane unless you are a seasoned professional.
Even after the market sell-off, silver was still up nicely for the day. Stockcharts shows silver closing near the highs of the day at $19.79. But before I reveal the chart, here is my silver chart posted on Wednesday, July 8th:
As I have mentioned in several articles, when a stock or commodity price BREAKS above a certain key technical level, it goes on the professional traders’ radar. Thus, a BREAKOUT is a motivation for traders to jump aboard and ride the price higher to the next level… which is $21. On July 8th, silver closed at $19.16 (stockcharts.com, not Kitco’s price).
Today, silver shot up 70 cents and closed at $19.79, only $1.21 from that $21 target level.
These are monthly charts, which show an entire month’s worth of trading in once candlestick. I like to use the monthly chart because the technical levels are more long-term. The silver price has remained below the $18.50 level since October of 2016. And, by that, I mean the silver price closed below the $18.50 level (on a monthly basis) since October 2016.
Interestingly, if you look closely at the June candlestick, it barely closed above the $18.50 level. With silver now trading $1.00 above the $18.50 level, there is a good chance that traders will continue to push it up to the $21 level.
I have to say, after watching the Day Trading markets for a year, it’s amazing how these technical levels are MAGNETS for the price action. Of course, there is no guarantee that the price will move a certain way, but there is a better chance when it breaks above or below critical technical levels.
When silver finally does reach the $21 level, we are likely going to see a correction before resuming the longer-term bull market. Furthermore, the $21 level is much more important than the $18.50 level. When silver finally BREAKS the $21 level, it can move up to $27.50 very quickly. I will be posting a new video on this shortly.
Lastly, CLOUD HARD ASSETS still has the lowest 2020 Silver Eagle prices in the market. I just updated the premium prices and chart for the top four leading precious metals dealers versus CLOUD HARD ASSETS and here are the prices as of close today:
Top Four Leading Online Precious Metals Dealers 2020 Silver Eagle Prices (based on 1-19 coins)
- Precious Metals Dealer #1 = $28.36
- Precious Metals Dealer #2 = $27.16
- Precious Metals Dealer #3 = $27.11
- Precious Metals Dealer #4 = $26.13
- CLOUD HARD ASSETS = $24.33
Not only does CLOUD HARD ASSETS have the lowest Silver Eagle Prices, but they also have the lowest prices for Silver Maples Leafs, only $3.40 over spot.
If you want to find out more about CLOUD HARD ASSETS, click on this page: PRECIOUS METALS INVESTING.
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Who cares about $21!?
I want to know when it will reach $50. And then $100.
You have to be 21 to drink the magic bullet
Gregg,
You should care about $21 because that is a MAJOR TECHNICAL LEVEL for silver, just like Gold finally breaking through $1,350.
steve
I’ve already ridden that silver elevator up, 10 years ago, only to take the escalator back down. I’m just impatiently waiting again for the next elevator up.
I’ve been riding the Silver elevator since 2007. What a wild trip its been.
We’ve already broken through the INSANITY TECHNICAL LEVEL of the Federal Reserve. It’s time we get back to the Gold Standard and a reset of gold and silver to their true values.
Gregg,
I understand what you are driving at, but what does that mean… GOLD RESET, GOLD STANDARD?? I hear Jim Rickards and Peter Schiff talk about this all the time, but how does a new Gold Standard fix our DIRE ENERGY PREDICAMENT??
Actually, I don’t see the world ever going back on a Gold Standard. It can’t. If it did, the entire Market would collapse.
However, that doesn’t mean we aren’t going to see MUCH HIGHER GOLD & SILVER PRICES… we are.
steve
From various stories and sources I’ve seen over the past several years, it appears to me that a new Gold Standard is possible if not likely, assuming a second Trump term.
Just touching on a few things… As of last year – New Basil III rules making gold a top-tier asset (again), various Trump statements, suggesting he likes the idea of a gold-backed currency – and Trump has nominated his Financial Advisor and gold advocate, Judy Shelton for the Federal Reserve.
Then there’s House of Representatives bill H.R. 5404, introduced March 2018, stating…
“This bill requires the Department of the Treasury to define the dollar in terms of a fixed weight of gold, based on that day’s closing market price of gold. The Federal Reserve Banks shall make Federal Reserve notes exchangeable with gold at the statutory gold definition of the dollar.”
Source:
https://www.congress.gov/bill/115th-congress/house-bill/5404
There are also a number of other things, like central banks and countries loading up on gold, changes in the gold market such as the Shanghai Gold Exchange and China’s influence, GESARA and NESARA, and Trump’s future exposure of the corruption in the Fed, perhaps some type of audit, and transition to a new Treasury currency, transitioning out of the Federal Reserve Note, and with that a revaluation of Gold – which may not necessarily be a specific moment where the value is “reset,” but will be more of a continuing, gradual rise in price (as we are seeing now), until we get to a somewhat stable level that would more appropriately value gold. And perhaps, once gold reaches a certain price, H.R. 5404 could be implemented with a defined weight per dollar that would make sense.
However it unfolds, we are in agreement that we will see much higher gold and silver prices.
Actually, I do see the world going back on a Gold Standard. And I disagree that, a new gold standard would make the entire market collapse. In fact, just the opposite. I think a gold-backed currency would prevent the collapse.
And, IMHO, it’s like others have said – it’s not a matter of not having enough gold to back the currency, but how much must gold be valued to back the currency.
And you ask, “…how does a new Gold Standard fix our DIRE ENERGY PREDICAMENT??”
A new Gold Standard doesn’t fix our dire energy predicament. Our energy predicament will only support and enhance the value of gold, silver and all other metals and minerals that are mined.
Excellent points Greg, and well said.
Steve, saying “the entire market would collapse” seems like a nonsensical objection to a gold standard that perhaps you would care to clarify.
After all, isn’t the markets collapsing part and parcel of the energy predicament and fiat collapse and already baked in? Your use of this phrase is very surprising.
Moreover, why is this a bad thing? Should we not view a society based on honest money and the integrity that flows from it preferable and more life enchancing then the vileness and corruption of current so called markets?
While a gold standard will not solve the energy predicament per se, that doesn’t mean it is not necessary for survival. Fiat has reached the utter end of the road globally and we need some kind of stability to solve energy issues, if there is a solution.
Honest money may provide the right atmosphere to succeed. Truth furthers clarity.
If there is no solution, at least we won’t all die as total scumbags. As in all dimensions we should just do the best we can.
Per your other point, I don’t see what value “much higher gold and silver prices” has when we are all totally focused on killing and/or enslaving each other.
Quite obviously, the use of gold/silver requires at least some small degree of social stability, law, and freedom. Fiat is going to zero and a lot faster then most
perceive
It seems quite superficial to think that by introducing a new form of currency, suddenly the deep state and all the organizations involved (global and local) will become champions of freedom.
I agree with Steve. This is the kind of thought process Schiff, Rickards and a bunch of other gold salesmen use.
Gold is just a thing, it hasn’t got supernatural powers. Neither does silver. Or any other commodity or precious metal. First, we need a society that appreciates facts, laws, and morality. Then we can use either gold or paper money backed by gold to have stable markets where everyone can prosper given hard work and diligence.
However, the current situation is very much complicated by the coming energy cliff that Steve writes about a lot. What happens to all the people without energy to maintain JIT deliveries? What happens to our megacities and suburbs? What happens to the infrastructure including the critical ones such as nuclear power plants? What happens to sources of food monopolized by Monsanto?
There are absolutely no solutions to these issues. Therefore, societies around the world will collapse and burn. And, just maybe, from the ashes at least one society will emerge that will be somewhat similar to what the American experiment once was.
Until then it’s all just dreams of becoming rich in the same conceptual framework. Gold goes to $10,000 and silver to $500 and you can go out and buy more crap. Or put it back in the ground like many Romans did. But that’s really it.
Also, I just don’t see why would any government relinquish power by introducing gold into their monetary system. Even those governments that did free up their economies a lot have never touched on a subject like that. Gold money means that the government is powerless and the people hold all the power. Please, show me a society anywhere in the world today where either the government or the people actually want a system like that. Just look around… everyone wants more government, more regulations, more taxation, and less freedom.
Hello a,
“It seems quite superficial to think that by introducing a new form of currency, suddenly the deep state and all the organizations involved (global and local) will become champions of freedom.
I agree with Steve. This is the kind of thought process Schiff, Rickards and a bunch of other gold salesmen use.
Gold is just a thing, it hasn’t got supernatural powers.”
Nobody here has claimed the above, which is absurd. STRAWMAN HO!
It’s unclear what Steve thinks that you claim to agree with. This needs to change imo. Steve?. All he said was a gold back currency wouldn’t work because it would cause the market to crash. Thunk
Agreed that no gov will do this willingly. Never have, never will.
However, imo it doesn’t have to go all way back to ashes (as you say)to get a gold standard, somewhat equitable society. Probably it will, but we should try to avoid that, if for no other reason then that neither you or me can survive that. Nor 99.9% of our offspring.
Gov will not do this willingly but it can be forced by events. Currency is how govs control the people. When the currency hits zero the gov dies. However, as it takes it’s last breaths and is just a skeleton of what it was, hardly recognizable, it will have a choice between no currency and metals backed. Has to be fully redeemable.
The latter allows a few scoundrels to hold on to a minimum amount of power. But you and I Get to hold onto privacy, silence, roaming room and a full belly. True wealth
That’s what stacking is about. Not so, as you say, one can be “rich in this conceptual framework and go out and buy more crap”
It wasn’t a straw-man argument. I was taking the goldbug rhetoric into an extreme to make my point clear without writing a 10 page comment.
A gold backed currency would completely annihilate the markets for many reasons. One, all debt is issued in paper. And by all I do mean all, including local, state and federal projects, pensions, and businesses. Then there are international agreements on the national level, supranational arrangements, banking systems, the BIS. EVERYTHING works based on the dollar.
To convert all of this debt and all this financial structures to a currency backed by gold would be a gargantuan undertaking that would cost trillions of dollars. By the way that would require more debt but that’s not the point here.
The point is WHY ON EARTH would anyone want this except for a minuscule minority of gold and silver stackers in order to get rich? What about all the billions of people who don’t own any gold or silver? What do they get out of this transition?
Or do you mean that you want to abolish central banks and only private banks would issue gold certificates as in the 19th century? Maybe this time it would be digital certificates, correct? Exactly how many businesses would go instantly bankrupt after that change? How many millions of people would be unemployed?
Nobody in the entire gold community has ever seriously analysed all the repercussions of a gold backed currency in today’s markets. All they do is talk they BS, so that they sell more of their stuff. It’s massively disingenuous and is very far off their pretend goal of lawfulness and morality.
We are past a gold standard and there is no way back to it. If we crash and burn, which is the most likely scenario as you yourself agree, then maybe afterwards we might get to a gold standard.
What I agree with Steve on is that I rather have these assholes drag on this zombie economy for a couple more decades instead of an instant crash and burn that would be worse than WWII and the Black Death age combined. But don’t worry, we’ll get to that gold-bug fantasy land because of the energy cliff. But instead of a pretty dream of riches it will turn out to be Hollywood movie nightmare.
That’s why I said get more crap or BURY your gold like the Romans. We are still finding their hoards today, so that should tell you something about how that collapse turned out.
In my opinion, currency won’t go back to real money UNTIL the collapse. They won’t give up their power (central banks), there would be serious liquidity problems if they reimposed the gold standard.
Thanks, Steve for your brilliant insights and bountiful work.
The gold standard will NOT be making a reappearance anytime sooner or later while the global central banks continue the counterfeiting programs of the last hundred years or so.
The main reason is that with a finite supply of precious metals a return to a Gold Standard would CAP the central bank’s credit expansion monetary system; and that is NOT happening.
The global central banks have been accumulating gold because they do not trust the monetary expansion of the western-oriented countries money printing and debasement strategies of the past decades. And, gold (as well as silver) has been so easy to obtain for central banks over the years because the American Sypression Scheme has capped prices on precious metals and manipulated the PM prices for their own agendas (read credit expansion).
So maybe not a government backed gold standard, but a peoples gold standard. Does it really matter what the systems dictates as a standard. The people choose and a higher gold price is a new gold standard. The free market standards.
Steve, you once stated that copper will fall to $1500 and it intead went up. Do you still support your earlier target. It is important because some traders talk about prime material inflation and others claim that they first will be deflated.
Yes, Silver will exceed $21/oz. no doubt.
Yes, and then some!
When and at what price will Silver and Tesla cross?
Yes. It wouldn’t surprise me if it bummed its head at 27 and fell to 21 as support.
Congress will have to pass more unemployment and helicopter stimulus before August, or the economy could dump wildly. Over 32 million unemployed now. Dollars are going to be looking for a place to go because even the mighty techs have a limit. Precious metals are just going to be harder to buy reasonably. I’m still kicking myself because when the dealers ran out of Silver Eagles and like, some still had Chinese Pandas only at about $20, and I laid off. Now they are completely sold out or too expensive.
in march silver went to 19 canadian, you all shoulda jumped on the bandwagon then. I bought 600 ounces then and took a 3000 profit then. i cant just stack forever gotta make some money to beable to buy more silver. however you play it, good luck stackin and packin.
Interesting how $21 is a key technical level but it can’t be had right now for under $24-something.
It’s just so F’…ing unimaginable that our crooked market systems allow the physical metal price to be determined by the Casino’s Futures Markets. Accumulate ALL the PMs you can at these FIRE SALE PRICES.
Since Cloud Hard assets sell a minimum of 20 eagles at a time (an unopened tube), why compare their price for 1-19 against online dealers who do have a per ounce price on quantities of 1-19?
I’m missing something.
Thanks DC. You’ve made this important point before but it was ignored and the claim about Cloud’s prices have continued to be made.
Cloud has great service & prices…starting with a tube of 20 ASE’s or 20 Philharmonics, or two ten ounce bars.
If one wants 1-19 ounces; 5+ (over $99) gets you free shipping & no sales tax delivery to most states from at least 3 online dealers.
An ASE is legal tender money, which is why most states don’t have sales tax on coins.
I’m curious to know what happens as silver finally breaks out of its 40 year cup with handle formation. How does something like that play out?
It’s another C O T Tuesday..so down goes Silver. Tuesday is almost always a ‘captured’ day in this long term battle—making it often a great day to add Phyzz.
The teasing will continue…but the bikini bottoms will come off when Silver is nearing $36.
The price of silver MUST go significantly higher, or we’ll soon be facing crippling shortages…
They don’t care about crippling shortages as much as they fear the price of silver in U.S. dollars climbing above those techical levels and gaining favor with traders & investors.
Seriously, the silver price is indeed the Achilles heel of the monetary system.
Folks watch the financial & societal events that happen when silver gets traction somewhere above $25. Particularly if it runs to around $75 & continues climbing. It will happen fast & so will the contemporaneous events.
DC: You are absolutely right. Virtually none of the comments for this article mean anything, except what you just said. So much meaningless babbling from others and not getting anywhere. However, you nailed it.
The price of silver is the barometer for future chaos. So many commenters on this site and others arguing about silver supply, silver price, waves, charts, etc. Ultimately MEANINGLESS.
Many want the silver price to go higher. Many want to be rewarded for their years of saving and stacking. Everyone should be careful what they wish for.
A rising silver price means that the system is crashing. And as you say, when it gets traction and hits $25, then continues to rise, it will be reflecting the cascading crash in the economy and society.
Could it be that Gold responds to monetary inflation (increase in money supply) while Silver responds to consumer price inflation? Two very different kinds of inflation as we have seen over the past decade and not always the same
https://www.marketwatch.com/story/why-silver-is-trading-at-a-nearly-4-year-high-2020-07-13?link=MW_latest_news
“As of June 30, global holdings of silver in silver exchange-traded products, or ETPs, which include ETFs, reached a “fresh all-time high of 925 million ounces, which is roughly 14 months of mine supply,” according to a recent report from The Silver Institute, an international industry association.”
Does ANYONE with a functioning brain really believe paper-contract-settlement pseudo silver funds hold 925 million ounces of physical silver?
I dont think Gold will be adopted as a national currency, but I do think it will be used in the monetary system. I recall reading that China’s oil contract was denominated in Yuan but convertable to Gold. For an energy player like Russia that is a big win. Exchange your oil reserves for gold reserves. Such a move secures future purchasing power and removes the risk of currency debasement. At somepoint in the not too distant future Gold will be viewed as the only tier 1 asset and will be leveraged as tier 1 collateral. Today the BIS recognizes Gold and treasurues as tier 1 assets, but I think this corona pandemic will ensure that treasuries lose thier special status as the U.S.A’s credit worthiness becomes increasingly questionable.
Steve
Do you think the coin shortage
Will delay ASE production?
Iggy,
No… one is not associated with the other. However, if we do get a continued Second Wave of the pandemic in the United States, that could cause more closures of the U.S. Mint and silver refining output. We will see.
steve