Silver About To Break Out Big!

Silver stocks are moving up, signaling an imminent breakout in the precious metal

Silver is one asset class I do not cover very often, but have been largely bullish on since $6 an ounce many years ago. It can be considered “poor man’s Gold” as they say.

I believe Silver is about to stage a pretty large advance based loosely on the Elliott Wave pattern I see unfolding after a 9 odd month consolidation. (Obviously, there are also fundamental fiat currency/debt events worldwide that give it the underlying bull chart pattern).

Since the average person can’t run out and buy an ounce of Gold for $1,240 tomorrow, as the unfolding of the fiat crises continues to enter the public psyche, you will see a strong populace movement into buying silver, silver coins, etc. To wit, many silver stocks are moving up strongly of late, signalling an imminent breakout of this precious and industrial metal.

The triangle pattern has taken nearly nine months so far, and a move over $19.50 could start a multi-month run targeting $26-$29 per ounce for starters before a broad pullback.

A few silver stocks worth looking at include Silver Wheaton Corp. (TSX: T.SLW, Stock Forum) which purchases future silver mine production in advance at a discount, a long-time favorite of mine and Fortuna Silver Mines Inc. (TSX: T.FVI, Stock Forum), a growing producer and explorer favored by some of the brightest minds in the business.

I do not own shares in either, so I have no inherent bias to mention them other than they are worth your time to review sooner than later. The Market Trend Forecast.com does not offer stock or trading advice, so please do your own research and consult a professional if need be.

I post the Silver chart below and my outline shows my views of a multi month 5 wave bullish triangle pattern on a weekly chart. Silver needs to bust through $19.50 per ounce to confirm, but I suspect we will see this fairly soon.

This is an Excerpt from an August 31st forecast to our subscribers of The Market Trend Forecast.com, who were alerted at $18.73 per ounce, now $19.50)