Today is not just about AGQ or silver. I have again shared other members from the precious metals group, which align to my thinking 🤔 of what comes next.
Silver price on the uptrend making higher highs and higher lows is no longer the news. As I mentioned in my last week's post, this has increasingly becoming a crowded trade. More market participants are growing more concerned rather than confident that silver price might have peaked.
This article looks at the other members to dispel this concern. Yes, silver price has been breaking all-time-high (ATH) after highs. This has been happening since silver broke $50 barrier. Just how high could this go? From memory and chart point of view, silver price has in fact broke out from a cup and handle formation, therefore this fast and furious price action period after clearing $50. The depth of the cup is around $40. The handle correction sent the price back to around $45 after silver reached its last ATH in October. This leave a theoretical upside potential for silver to hit $85! Obviously, this is a mid to long term target. I don't expect this target to be reached by year-end. 2026 might be a possibility if the momentum maintains. $70 on the other hand is possible by end of this year.
Precious metals group, a supposedly boring and stable space that not many people pay attention to. Not the investment community. All this changed when each of the members tried to outperform the other this year. I am sure it's the top performing group for this year to-date as far as investment instruments are concerned.
Looking at gold and platinum charts below, hopefully you will understand my confidence for silver's price movements. Corrections are always there. They are a MUST and lifeblood for sustainable rally. With momentum across the board, precious metals take turns to cheer one another onward. As mentioned in the previous post, this is the tag team rally. By continuing rallying, the gold-silver ratio is maintained. Platinum and palladium rally ensures that no group members are left behind. All these are necessary conditions for sustainability, especially in the face of weak USD.
Furthermore, next year's US midterm election will only add to more uncertainty. Inflation is expected to be high given Trump's tariffs policy. Add to the mess is the expected drop in Federal Reserve rates! 😜 Yup, the rates in US are still expected to come down despite substantial inflation due to Trump's pressure and Federal Reserve chairman changes in May next year.
It's going to be a new year filled with questions, uncertainty and instability. All these point towards further price upsides for the precious metals group. Silver, being the speculative of them all, will likely be the biggest beneficiary.
Therefore, no... this is not the time for profit taking. Rather ride the wave 🌊 as this wave doesn't come often. In fact, I have waited for more than a decade for it to come. The only thing to make sure that you are safe is to check that the uptrend is still intact. If a downtrend should occur, be decisive to take profit off the table. There's always a better chance at another place next time.
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