Today, the silver price broke through a critical level held for nearly four years. With silver now firmly above the important $18.50 level, the next target is $21. If silver can break above the September 2019 high of $19.75 quickly, there’s a good chance it would reach $21 in June.
In my previous article, CHART OF THE WEEK: Silver Closes At The End Of May At An Important Technical Level, I posted the chart below showing how silver closed right at the key $18.50 on the last trading day of May. With silver closing at the very top of its price range on the last day of May, I anticipated that it would GAP UP in early Asian trading and continue higher towards the end of the day.
Here we can see that on the Monthly chart (each candlestick represents a full month of trading), silver closed right at the $18.50 level. If silver GAPPED UP in early Asian trading, then the bottom of the candlestick for the month would be ABOVE the $18.50 level. This was extremely important to occur. I tweeted the following charts during the early Asian trading on Sunday night and this morning in the U.S. Markets:
Silver behaved as I anticipated during early Asian trading.
The #Silver price Gapped up above the important $18.50 level.
Now, it needs to remain above $18.50 at the close of U.S. trading tomorrow. https://t.co/9KpXZOWOuO pic.twitter.com/5UD2M4YgAO
— SRSrocco Report (@SRSroccoReport) June 1, 2020
And then early this morning I tweeted the following:
The Silver price Gapped Up, Retested, and continues to Rally in early U.S. Trading.
A close above the $18.50, 15-20+ cents very positive for the #Silver Price in June.https://t.co/bcu8sqAccq pic.twitter.com/WoJV0iMVsu
— SRSrocco Report (@SRSroccoReport) June 1, 2020
As a reminder, the silver price quote on Investing.com and Stockcharts.com, come from the July Futures contract, where most of the trading takes place. Kitco.com is posting the June contract, which only traded 25 contracts on Friday versus 61,000 for the July contract. So, Investing.com and Stockcharts.com use the more heavily traded closest futures contract.
Regardless, here is the Silver Monthly chart with the first trading day of June:
Silver opened ABOVE the $18.50 level, so the base of the candlestick is above the important key resistance area, which I now believe may have turned into a support line. We will know over the next 1-2 weeks of trading. None of the previous four candlesticks that traded above the $18.50 level, closed above it or opened above it. This is an EXCELLENT SIGN.
If the silver price can break above the last high of $19.75 back during September 19th (RED ARROW) quickly, there’s a good chance it can reach the next target price of $21 in June.
While this is nothing more than PAPER TRADING, I can assure you; Traders were instrumental in pushing silver up above its long-term BREAKOUT LEVELS of $14 and $21 during 2007 and 2010 respectively:
We can clearly see that when the silver price finally broke above $14 in 2007, it shot up to $20 quickly. Then once silver broke above $18.50 and then $21 in 2010, it quickly shot up to $50. Traders look at these important SUPPORT & RESISTANCE LEVELS.
So, now with the silver price above the $18.50 level, its next target is $21. However, once it breaks above $21, it will quickly move to the $27.50 level (not shown in the chart), but you can see from the bottoms made during 2011-2012.
I look forward to watching how silver trades over the next few weeks. I believe with all the money printing, the next target of $21 could come quite quickly.
Comparing Ten Online Precious Metals Dealers 2020 Silver Eagle Prices
I have been posting from time to time four of the leading online dealers 2020 Silver Eagle prices versus CLOUD HARD ASSETS, sponsored on this website. I decided to do so because I saw such a significant difference when I compared the prices of 2020 Silver Eagles from the leading online dealers. According to my spreadsheet, the four leading online dealers Average Premium for the 2020 Silver Eagles is 59% over spot versus 37% for CLOUD HARD ASSETS.
So, with adding five more dealers to the list, now totaling ten, here are the 2020 Silver Eagle Prices as of 3 pm MST on Monday, June 1st:
I have continue to block out the dealers’ names on these charts for various reasons, however, mostly out of professionalism. But, if you go and check the individual online dealers’ websites, you will find these prices quite easily. The 2020 Silver Eagles prices range from a high of $31.59 to a low of $25.04. CLOUD HARD ASSETS is shown at the lower end of the range.
Dan from CLOUD HARD ASSETS sent me earlier today their current premium for their 2020 Silver Eagles ($6.70 over spot) and Random Years ($6.40 over spot). So, it’s best to shop around and find the best deals and services for your hard-earned money.
You can contact Tom or Dan at CLOUD HARD ASSETS here: PRECIOUS METALS INVESTING.
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So now it’s a threeway horse race: Spot price, physical price, and commission price. In the past, when physical+spot prices rose, purchases tapered off. It will be interesting to see if Maxwell’s Silver (monkey) Hammer will strike again.
How can we obtain the names of the other 9 dealers? Apmex, sdbullion, gainesville, jmbullion, milesfranklin… who else
To get the coin dealer names you desire, go to a coin site, look around awhile, and within an hour Google tracker will plaster every coin dealer available online to your browser. It’s just magic.
I can think of a better word than “magic”. Insidious.
Brilliant answer though.
Alternatively, try talking with someone about silver coins with your google android phone next to you, and then watch the email spam on silver come in. (Yes I have experienced this phenomenon, but this was for guns after talking with a landowner about hunting on their land – never had one such email before or since then.)
“Maxwell’s Silver (monkey) Hammer”
I wonder if the government mints are charging the bullion dealers more premium than usual? Probably not much more. JM Bullion is selling a 1995 Silver Eagle for $36.77 but offering to pay $20.28 buyback. Yeah right!! Talk about price gouging.
They are selling a 1 oz 2020 gold buffalo for $1893 and buyback is $1768. That tells you about what the mints are charging. Oh well, They know the investors are starting to bite.
Thanks Steve. Wonderful technical analysis. Corroborates with the other technical analysts I read up on. Keep up the good work!
I have some physical gold and silver and now I’m wondering if investing in Silver mining stocks might also be a good idea. From what I’ve read and watched on YouTube the potential gains can be quite good, assuming silver breaks out. I’m a conservative investor so I’ll only risk what I can afford to lose in a worst case scenario. What are your thoughts or recommendations?
Check out https://investmentresearchdynamics.com/mining-stock-journal/
Study, ask questions, and educate yourself before investing
Tuesday’s COT silver report shows the banksters are increasing their short position in silver and they are armed with unlimited “free” money from the FED to suppress the silver price. Their only worry is that more silver longs than usual will actually want to take delivery. They’re also helped by the delusional who think the economy will soon be in great shape.