After a nice rally over the course of December due to a stock market sell-off, a scaling back from the Fed with its monetary policy, and a breaking dollar, the silver market has some resistance in the $15.75 per ounce area. However, with the stock market as unstable as it is, many in the industry are calling for a big push higher regarding the precious metals and are bullish on silver in 2019. I think the support for silver is about $15.20 and about as far of a pullback we will have from here. I agree with the bullish consensus, and if you look at the gold/silver ratio which I have been writing about, I feel investors will look at silver as an attractive and cheaper metal to invest in.
I believe the recent run up with the equities has paused the rally in gold and silver, but I think the equity market is going to pause too as we wait for more information. I have resistance levels around yesterday’s close for equity markets. Overall, I believe silver has the potential to go much higher in 2019, reaching above $17 and possibly hitting $18. With rising inflation and a gold/silver ratio as high as it is, I feel 2019 will be a great year for the metals and we have many strategies in place to take advantage of the situation for the upcoming year. We may be a little overbought now due to the recent run up, but I would be buying dips in the market. We can really take off if we get through and break the trend line on the weekly chart below.
Silver Weekly Chart