Saturday, June 7, 2025
  • Business
  • Investing
  • World-news
  • Stock
No Result
View All Result
Finance Mastery News
Advertisement
  • Business
  • Investing
  • World-news
  • Stock
No Result
View All Result
Finance Mastery News
No Result
View All Result
Home Stock

Silver’s Surge is No Fluke—Here’s the Strange Ratio Driving It

admin by admin
June 7, 2025
in Stock
0
Silver’s Surge is No Fluke—Here’s the Strange Ratio Driving It
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Silver just hit a 13-year high, breaking above a key resistance level that could ignite a major bull run. Some metals analysts now say a rally to $40 isn’t a long shot, but a matter of time. So, are the odds finally shifting in favor of the bulls?

And, more importantly, is now the time to capitalize on silver’s breakout?

To answer, let’s break down the key technical levels and explore the fundamental factors that may (or may not) fuel silver’s next major move.

Gold vs. Silver: A Look at Intermarket Momentum

In the StockCharts Market Summary, the Intermarket Analysis panel highlights various commodities and indexes. You’ll notice that SPDR Gold Shares (GLD) is leading the group with the largest positive three-month price change and StockCharts Technical Rank (SCTR) score.

FIGURE 1. MARKET SUMMARY INTERMARKET ANALYSIS PANEL. Gold is significantly outperforming other commodities.

While silver is missing from this panel, the intermarket analysis chart to the right of the panel, which plots a one-year chart of intermarket performance, allows you to add silver to the group.

FIGURE 2. ONE-YEAR CHART LAYING OUT THE INTERMARKET ANALYSIS COMPONENTS. iShares Silver Trust (SLV) (color-coded gray) and its latest intermarket performance reading is highlighted by the magenta box.

Is Silver Undervalued? Understanding the Gold-to-Silver Ratio

Note the wide performance gap between GLD and SLV. Let’s look at a chart illustrating the gold-silver ratio ($GOLD:$SILVER).

FIGURE 3. 15-YEAR CHART OF GOLD-TO-SILVER RATIO. The ratio is above both averages, suggesting that silver is undervalued.

Take a look at the blue and green bands. Both represent the common gold-to-silver ratio levels that many, if not most, analysts use.

  • The blue band (60:1 to 65:1) reflects the long-term post-1971 average.
  • The green band (70:1 to 75:1) reflects the 10-year modern average.

When the ratio is above these bands, silver is typically undervalued relative to gold. This can signal three possible outcomes:

  • Silver rises while gold declines.
  • Both rise, but silver outpaces gold.
  • Both fall, but silver falls less.

The key question now: If silver is undervalued, does the technical setup support an actionable bullish resolution?

SLV Breaks Out: Key Support and Resistance Levels to Watch

In the daily chart below, SLV recently broke above key resistance at $31.75, exiting a wide trading range that stretched down to $26.25. The Quadrant Lines symmetrically divide the entire zone, providing more clarity to the trading volume and price behavior.

FIGURE 4. DAILY CHART OF SLV. Support levels are highlighted within the four quadrants dividing SLV’s 8-month trading range.

Here are a few key insights to consider:

  • The Stochastic Oscillator is reading “overbought,” suggesting that a pullback is likely in the coming sessions.
  • Buying pressure is stronger than at any point over the past year, according to the Chaikin Money Flow (CMF), suggesting that SLV, even in the case of a pullback, may have enough volume-driven momentum to drive prices higher.
  • The first quadrant, shaded green, marks the breakout level and top of the eight-month trading range.
  • The second quadrant, shaded yellow, marks the highest concentration of trading activity and various levels of support and resistance.
  • The third quadrant, shaded red, marks another level of support before the bottom of the range, which also marks the lowest support level over the last eight months.

If SLV pulls back but investor conviction remains strong, a bounce is likely within the first two quadrants, particularly the second (yellow) quadrant. However, if SLV drops below the second quadrant and enters the third (shaded red), it signals weakening sentiment and suggests the breakout has failed, pulling SLV back into the trading range that has dominated over the past eight months.

Will Silver Hit $40? Forecasts and Fundamental Tailwinds

Some analysts are expecting $SILVER to rise to around $40 an ounce. SLV’s price equivalence is around $37–$38 per share.

From a technical perspective, historical resistance levels are often target zones for those looking to take profit or unload positions. Here are the historical resistance levels to watch in SLV (pull up a 20-year chart of SLV to see these levels):

  • $36.44 – the February 2012 high
  • $42.78 – the August 2011 high
  • $48.35 – the April 2011 high

These are the levels reached since the last major silver boom in 2011. SLV may (or may not) reach these levels, but it’s important to see the proverbial “roof” before you hit it.

What This Means for SLV Traders Going Forward

With silver breaking out and momentum accelerating, SLV could be setting up for a sustained move. So watch the depth of the pullback, if it happens. You will want to see a bounce above $29 (the lower part of the second quadrant); movement below that is not favorable to the bulls. And, last but not least, remember things can change quickly as geopolitical developments and economic news unfold.


Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

Previous Post

Everyone Talks About Leaving a Better Planet for Our Children: Why Don’t We Leave Better Children for Our Planet?

Next Post

Kharkiv hit by ‘most powerful attack’ of entire war, mayor says, as Russia pounds Ukraine again

admin

admin

Next Post
Kharkiv hit by ‘most powerful attack’ of entire war, mayor says, as Russia pounds Ukraine again

Kharkiv hit by ‘most powerful attack’ of entire war, mayor says, as Russia pounds Ukraine again

    Fill Out & Get More Relevant News


    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    • Trending
    • Comments
    • Latest
    Criminals are looting millions from ATMs in Europe. Here’s why Germany is a prime target

    Criminals are looting millions from ATMs in Europe. Here’s why Germany is a prime target

    October 28, 2024
    Israeli MP behind bill to expel key UN agency accuses US of interfering with process

    Israeli MP behind bill to expel key UN agency accuses US of interfering with process

    October 28, 2024
    British nurse Lucy Letby loses bid to appeal single attempted murder conviction

    British nurse Lucy Letby loses bid to appeal single attempted murder conviction

    October 25, 2024
    North Korean troops spotted in Russian border region with Ukraine, says Kyiv

    North Korean troops spotted in Russian border region with Ukraine, says Kyiv

    October 25, 2024
    Trump-Xi call restores trade truce. But the supply chain war has no end in sight

    Trump-Xi call restores trade truce. But the supply chain war has no end in sight

    0
    Private payroll growth slowed to 122,000 in July, less than expected, ADP says

    Private payroll growth slowed to 122,000 in July, less than expected, ADP says

    0
    The 10 worst states to retire in the U.S. No. 1 isn’t California or New York

    The 10 worst states to retire in the U.S. No. 1 isn’t California or New York

    0
    Boeing taps aerospace veteran Ortberg to replace Dave Calhoun as CEO

    Boeing taps aerospace veteran Ortberg to replace Dave Calhoun as CEO

    0
    Trump-Xi call restores trade truce. But the supply chain war has no end in sight

    Trump-Xi call restores trade truce. But the supply chain war has no end in sight

    June 7, 2025
    China-appointed Panchen Lama vows to make religion more Chinese in meeting with Xi Jinping

    China-appointed Panchen Lama vows to make religion more Chinese in meeting with Xi Jinping

    June 7, 2025
    Israel confirms it is arming Hamas rivals in operation opposition calls ‘complete madness’

    Israel confirms it is arming Hamas rivals in operation opposition calls ‘complete madness’

    June 7, 2025
    How the US could be vulnerable to the same kind of drone swarm attack Ukraine unleashed on Russia’s bomber fleet

    How the US could be vulnerable to the same kind of drone swarm attack Ukraine unleashed on Russia’s bomber fleet

    June 7, 2025

    Recent News

    Trump-Xi call restores trade truce. But the supply chain war has no end in sight

    Trump-Xi call restores trade truce. But the supply chain war has no end in sight

    June 7, 2025
    China-appointed Panchen Lama vows to make religion more Chinese in meeting with Xi Jinping

    China-appointed Panchen Lama vows to make religion more Chinese in meeting with Xi Jinping

    June 7, 2025
    Israel confirms it is arming Hamas rivals in operation opposition calls ‘complete madness’

    Israel confirms it is arming Hamas rivals in operation opposition calls ‘complete madness’

    June 7, 2025
    How the US could be vulnerable to the same kind of drone swarm attack Ukraine unleashed on Russia’s bomber fleet

    How the US could be vulnerable to the same kind of drone swarm attack Ukraine unleashed on Russia’s bomber fleet

    June 7, 2025

    Disclaimer: financemasterynews.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Browse by Category

    • Business
    • Investing
    • Stock
    • World-news

    Recent News

    Trump-Xi call restores trade truce. But the supply chain war has no end in sight

    Trump-Xi call restores trade truce. But the supply chain war has no end in sight

    June 7, 2025
    China-appointed Panchen Lama vows to make religion more Chinese in meeting with Xi Jinping

    China-appointed Panchen Lama vows to make religion more Chinese in meeting with Xi Jinping

    June 7, 2025
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 financemasterynews.com | All Rights Reserved

    No Result
    View All Result

    Copyright © 2025 financemasterynews.com | All Rights Reserved