Silver Price Breakout Round Two (Why Silver Is Set Up To Surge Higher)

June 3, 2024

Silver Price Breakout Round Two (Why Silver Is Set Up To Surge Higher)

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hey everybody smart silver stacker here hope you’re doing well welcome to another live stream it’s a big day for silver as you can see price is silver up almost 6% today the spot price of silver now above $32 once again big rally following the Memorial Day holiday weekend you can see uh here on the technical chart from Trading view that what has occurred here is we had a major breakout of silver Friday May 17th above the $30 level that’s a level in the silver price that has held for uh over a decade had a nice runup in very short order to over $32 then we had a pullback pretty normal following a big breakout you know people take some profits then the $30 level which was the long-term resistance has become support officially I think we can say that now given the magnitude of the rally that we have witnessed today in silver sending us back up over $32 now from a technical standpoint if we zoom out this is very bullish for the price of silver moving forward we can zoom out actually let switch this to a weekly chart and it really filters out a lot of the noise when you do that but we’ve had this uh long-term consolidation in silver now we called the breakout on that back in April uh I think within about a week after we had called for a break out there we we did actually witness it now silver was Off to the Races there was a little concern I think following that consolidation after the run up to 32 but look I mean now when you look at it on a weekly chart that again just looks like noise right I mean the breakout is intact $30 is probably support now for the foreseeable future very unlikely we’re going to go back below $32 not Financial advice or anything you know just my analysis of the scenario and so yeah silver was really cheap when it was under 26 bucks it was really cheap when it was under 30 now I mean maybe it’s slightly less cheap but still we should see the price heading to uh all-time highs I would anticipate in relatively short order you know you’ve got gold sitting just under its all-time highs already had a major breakout there copper recently hit a all-time high so it makes sense to me that silver will also be heading for alltime w we’ll talk about some of the reasons as we go through today’s live stream thank you Jeff Tully tiger Thomas Jeff Tully tiger mircat Dragon Thomas now an amended name longtime supporter of the channel I see in the the chat there uh hello to everybody in the chat do me a favor if you’re watching this video If you uh want to see more coverage of Silver’s big breakout which appears to be you know well underway now this is phase two where we’re going to head up to the $40 $50 level I believe uh smash that like button subscribe to the channel so if you want to get some silver before that big runup I know you know kilo of silver used to be under 1,000 bucks but I still think that 1,000 $70 or so for a kilo of silver is still cheap it’s just not Dirt Cheap like it was a few months ago you can get that at SD bullion today’s video sponsor they’ve got a sale going on where you can get uh kilo bars of silver for 9 cents over the spot price any quantity pricing uh these Voli bars so if you’re in the market to get some cheap low premium silver that’s where I would uh head that’s where I buy my gold and silver so let’s get into some of the factors that are driving silver here now I mean these are factors that we’ve been covering on this channel for some time um however not a lot has changed in fact I mean the the stories we’ve been covering they just continue to uh March along these Trends one of them is the expansion of the war in the Middle East and the risk of a broader regional conflict so here’s a headline from yesterday The Times of Israel Hezbollah fires dozens of rockets at North after fatal IDF attack in South Lebanon now you might wonder why does this matter well if you recall uh there was the weekend when we had Iran launching drone strikes and missile strikes at Israel everybody was afraid that this might blow up into a major regional War well what happened over that weekend there were gold-backed cryptocurrencies that spiked up to over $3,000 or right around 3,000 bucks and clearly uh the risk of an escalation in the Middle East will lead to higher commodity prices uh lead to a rush into Safe Haven assets and this conflict in the Middle East has not resolved I mean it is still uh well underway and there remains a strong risk of a broader regional conflict illustrated by this headline from Al jazer shooting between Egyptian and Israeli Personnel near Rafa kills one Egyptian so you had members of the Egyptian Military in the Israeli military exchanging fire yesterday I haven’t seen too many details about what was behind behind this but it looks like it was some kind of an extended gunfight and at least one Egyptian was killed in that fire so you can see that this conflict again is continuing to escalate and Global Supply chains continue to be threatened this is from 6 hours ago from Bloomberg Greek owned ships takes on water after being struck in the Red Sea so a carrier sailing through the Red Sea today according to Maritime security firm Ambry is listing taking on water and that is the result result of being targeted by three missiles around 54 mil Southwest of the yeni city of Heda so uh Yemen’s houthis they say have not been named as the attackers but the group has carried out a series of assaults on ships right so the same threat persists uh all the money that the US has poured into securing the Red Sea and these uh routes seems to have been for not of course it will lead to high inflation and devaluation of dollar all of that deficit spending for defense but it hasn’t secured these Supply chains so Global Supply chains continuing to come under threat and you know all of this escalation that we’re witnessing over the past day or two it’s being reflected in the price of crude oil today as well which was up over 3% today back over 80 bucks uh yeah rol Steiner in the chat there saying the USA couldn’t defeat the houthis well it looks that way I mean I don’t think that there’s the resolve really to go in there and do what would be necessary to end that threat and so you know Supply chains are continuing to be disrupted despite the fact that again we’ve poured millions and millions of dollars into air strikes on Yemen all of that for not all of that for not it’s almost as if uh you know someone’s making some money from these prolonged conflicts and they’re uh you know advocating for them with our leadership but that’s another conversation um this one from investing.com was interesting it was uh from Kia advisory Commodities news and I wanted wanted to take a look at some of the things they said were contributing to Silver’s rally today because there was no like big news that I saw you know there was no super weak inflation print no terrible economic data or anything that stimulated this part of it I think was the technicals really strong support at 30 and the bidding continues but they say here that it is uh the launch of a new Chinese state-backed investment fund with a substantial registered Capital 344 billion Yuan aimed at boosting the semiconductor industry which uh boosted sentiment for silver which is widely used in electronics now I didn’t go digging for news regarding this specific fund I mean I don’t know how important that’s going to be for the price of silver in the longterm this one state sponsored fund but certainly uh Chinese Economic Development um and economic recovery in China could be significant for silver because they’re going to need a lot of silver for what they have planned now you can see this reflected in the price of silver this is the okay pardon me but this site is just not the most uh userfriendly here this is the Shanghai Gold Exchange English version so I don’t think they’ve put too much thought into UI here but you can see it’s the Shanghai silver Benchmark price chart and so this is the price of silver on the Shanghai Gold Exchange you can see that today The Benchmark am price so the the morning price for silver this is uh priced in renmimbi or Yuan and it’s per kilo so we got to do a little math here but it’s 8,381 or renmimbi the Chinese currency per kilogram of silver now if we do the currency conversion that’s a price of around 115662 so hey SD buen selling for under the Chinese spot price of silver right and uh if we do the math on that we can see uh again a kilo is equal to 32.1 5 Tri I mentioned this in a recent video and someone uh tried to correct my math there I think they were using avota ounces or something like that if I’m even saying that word right um but we can do the math here I’ve already done it it’s uh gives you a troy ounce price of silver here you can see on the calculator of almost $36 $35.97 so well above where we are today in the comx and in Western markets even the price of physical is below that right I mean you can buy a kilogram bar of silver from SD bullion for below the spot price on the Shanghai Gold Exchange so if that’s not uh an indication that you should be loading up on physical at these ridiculous prices I don’t know what is um but you know let me know what you think about that in the comments down below now why would China need a lot of silver moving forward well I talked about this uh story in yesterday’s video about Commodities in the coming bull market if you haven’t checked that out you can go see that after this live stream’s over but the the gist of this is that China is installing a huge amount of solar capacity now we know that solar means silver you need silver to make photovoltaic panels and the new type the more efficient type of photovoltaic panels actually consume more silver than previous versions there’s for a long time they’ve been talking about oh the efficiencies are getting better you know they’re going to use less and less silver in these solar panels well uh we covered it fairly recently on the channel there was a a study I think it was from the University of New South Wales you can look it up if you want uh regarding Silver’s use and these new types of silver uh intensive solar panels the new high efficiency solar panels they use more silver than ever before so think about this in 2023 China installed 26.9 GW of solar capacity the United States at the end of 2023 total solar capacity is 179 gaw so last year alone China installed more solar capacity than exists in the United States I mean clearly they’re going to need a lot of silver to upgrade the capacity of their green or alternative infrastructure whatever you want to call it and of course it’s not just in China that this is occurring you know as the AI uh boom takes place in Silicon Valley the big tech companies they’re going to need a huge amount of power yeah that is a lot of jigawatts uh Marty scruffy B in the chat there anytime I see the word jigat I think of the dock too don’t worry um but look I they’re going to need huge amounts of clean energy production now you might have a feeling one way or the other about wind and soul and uh oil and petroleum and all these things but the bottom line is that the big tech companies and apparently China too they want this carbon neutral energy and that means that they’re going to be investing a huge amount of resources into developing uh clean energy so solar’s going to be at the top of that list and that means they’re going to need a lot of silver so I mean the fundamentals for silver here have been stacked uh in favor of a major rally for a long time last year there was greater than a 100 million ounce deficit in the silver market meaning uh Industrial Supply was consuming a lot more than was being produced from either Mining and Recycling and as long as the price remains low more production will not come online so in order to incentivize the production that is needed for the infrastructure buildout which is right around the corner um they’re going to need much higher silver prices in order for the miners to actually get in there and those prices will need to be higher for a sustained period and you know therefore I think that this Rally from a technical standpoint we’re we’re you know there’s not much resistance between here and 50 bucks all-time high and I think we’re going to blow through that in short order I mean that is my forecast at this point uh but the fundamentals support that as well so there’s a strong alignment between the fundamental picture and the technical picture at this point and you know all of this buildout it’s going to need a lot of Commodities um I wanted to look briefly at the price of copper you can see the price of copper was up in a pretty significant way today as well it had fallen from its all-time highs let me adjust the picture here so you can see the prices all-time highs of just over five bucks per pound now we’re back up to 485 and I think copper probably headed to new all-time highs as well I mean we’re going to see a rally in Gold we’re going to see a rally in Platinum but the real thing is here that silver is just incredibly cheap still at today’s levels I mean it was a lot cheaper of course at the beginning of the year it’s up like 30 something per now from January but still the fundamentals have not been fully priced in despite the rally that we’ve seen I mean silver is still very cheap and I do believe we will be going much higher I have not sold any uh physical metal I don’t intend to sell any until we get to much higher prices hard to give a price for that you know I I would say I would be looking at indicators like the gold to Silver ratio rather than Fiat dollar pricing to indicate when you know it might be a good idea to lighten up on some some of your silver uh maybe when the gold to Silver ratio gets below say 50 or below 40 um that certainly would be an indication that you know the silver price might be uh doing some kind of an intermediate top or something like that but we’re nowhere near that I mean the gold to Silver ratio even though it’s come down still over 70 right now and so silver I think is still the buy although silver is catching up to gold and I believe it will be catching up um you know sooner rather than later probably uh you know I think there’s a real possib that we could see silver breaking out to new all-time highs before year end now that might seem a bit um aggressive a bit of a uh optimistic forecast but historically when silver breaks above 30 bucks it moves rapidly to the upside following that and look today we got the confirmation in the silver market that the $30 support has held so you know you can look at the charts you can try to ascertain price targets I think mid4 40s is like a really conservative Target for this leg of the breakout but uh new all-time highs they they’re they’re coming they are coming um on the copper front you know I thought this was an interesting uh resource related article that I saw today from engineering and Technology regarding a study that was done at the University of Michigan specifically about the demand for copper uh from electric vehicles and the gist of this study was that copper simply cannot be mined quickly enough to keep up with current policies now again I know people are watching and saying oh electric vehicles a scam whatever they’re not I’m not going to ever buy one okay whatever you don’t have to buy one governments around the world are mandating the production of these and they’re trying to steer the economy in that direction I mean it’s a boneheaded move I agree but you know really if if you need electric vehicles the free market will produce them right if they’re somehow so much better than internal combustion Vehicles we would get them from the free market but government policy is steering us towards these elect vehicles and you know it might be a fool hearty attempt but doesn’t mean they’re not going to do it uh pill says buying now is stupid uh I would disagree with that um you know buying at 26 yes was perhaps smarter than buying now but I mean I’m still buying you know I’m still in the market I’m buying the pullbacks when you see a dip in the silver price on this runup I think it will be a time to get in um I wouldn’t worry too much I mean there might be people who are like sour grapes they were dismissing silver I know there were a lot lot of people who were dismissing silver back when it was uh much cheaper saying oh no it’s never going to break out you know sure Gold’s breaking out to new alltime Highs but silver is just an industrial metal now um they’re probably singing a different tune now but look I mean now is actually the best time to buy silver we’ll get back to this article in just a moment but now really is the best time I think to buy silver because the breakout has occurred right so the run from now to all-time high prices it’s not like when you’re stacking here in 2022 or in 2020 saying ah higher prices are coming higher prices are coming no higher prices are here and the breakout is here and so uh look you might have missed out on this breakout thus far but that doesn’t mean that it’s it’s a stupid time to buy right I I don’t think that we’re going to see silver crash down below $30 I mean it’s just my take uh what do I know right I’m just some guy on uh YouTube but if you’ve been following the channel you know that we’ve been calling this breakout pretty accurately thus far uh in 2024 and so you know I can’t tell you what to do it’s not Financial advice I am going to continue stacking especially when we get any pullbacks um I did a video last week when we got that pullback that was called buy the dip and you know that was a better time perhaps to buy than now but again there’s no guarantee that we’re going to get another dip in fact I mean we’ve had the dip the silver price dipped down to the breakout level now it’s back up so it’s heading higher from here I think so you know if the Metal’s heading higher than that would mean now is a good time to buy um but this study from the University of Michigan uh some interesting points here so they say a normal Honda Accord needs about 40 lbs of copper the same battery electric Honda Accord needs almost 200 lounds of copper that is Adam Simon a professor of Earth and Environmental Studies at the University of Michigan and he says we show in the paper that the amount of copper needed is essentially impossible for mining companies to produce so if Supply is constrained and you know the boneheaded political Elites creating this policy to you know go more towards you know quote unquote green energy uh persist with these policies what does that mean it means the price is going to go much higher I mean it means inflation’s going to go much higher uh the price of many many things is going to go higher but uh gold silver copper Platinum these are going to be some of the best performing assets I believe of the coming commodity Bull Run uh oil too petroleum you know energy energy is going to be in very high demand moving forward because of uh the AI bre the AI Revolution The increased data consumption or increased energy consumption of these data centers and uh all of these Commodities are going to be needed for this high-tech industry boom that we’re witnessing and you know of course there’s always this right if you think everything else is maybe a bit of a stretch a little esoteric um you know you don’t buy the argument that massive demand for scarce Commodities is going to drive the price up don’t forget that we’re talking about the price in US Dollars the now we’ve got how many of them do we owe at the national level $ 34.75 trillion and growing rapidly the deficit you know over a trillion bucks interest on the debt uh Rising we saw another thing we saw today along with uh the price of silver Rising was treasury yields right 10-year treasury Rising today as well in the green those continue to move higher um I think one thing you need to watch out for here moving forward is a huge breakout now I want to talk about what could drive that soon now this one is a bit of a stretch oh hold on Wyatt her in the chat says this happened every year ywn you’re not correct there Wier uh it’s funny to call you that but look silver hasn’t broken above $30 since 2013 so we see sometimes these comments I don’t know maybe they’re a sh for US Dollars trying to uh you know cast some shade on the the precious metals saying things like oh this is routine moves this is normal stuff this happens all the time no it doesn’t it does not happen all the time in fact the silver price hasn’t broken Above This level in over a decade so to say it happens every year and it’s just seasonality no I I would disagree with that in fact you know if you watched my uh John Lee interview that was posted recently on the channel in two parts some he says that you know seasonality Wise this is actually a slow time for silver so he thinks that may count against it but I think that the other factors that we are witnessing play out here are going to be a lot more than enough to overcome Silver’s seasonality this time of year uh the one thing to watch out for later this week that could prove of interest and could trigger a a big run up in the price of silver I mean now that there’s not much resistance any longer between now and alltime highs we’ve got on Friday the pce index and the core pce index being reported this is the market watch economic calendar that’s going to be important you know one thing that we’ve seen happen with the precious metals with these inflation reports is if you get a weak inflation report that means the price of gold and silver will move higher because a lot of what is driving the price action right now is anticipation of what is coming next from the Federal Reserve so if we do get a cool inflation print this Friday and that’s like the fed’s favorite right the core PC index that’s what they like to look at that could be the trigger to send gold and silver on their next uh stage of this major rally Jeff Tully tiger Thomas in the comments here asks do you think the figures are correct on the gold to Precious medals tab in the lower right you’re referring to the debt Clock I don’t know let’s take a look let’s take a look I don’t even know what this this data is put it in the chat if you’re familiar with this this data okay well this is uh gold holding by country and ounces these are the official numbers do I think these are accurate probably not um I mean I don’t know maybe the US has all the gold ounces it reports hard to say it hasn’t been audited in a long time from what I understand but certainly uh Russia and China there is a lot of evidence that they hold much more gold than they are letting on um there are mechanisms by which they store gold outside of their official Central Bank Reserves we’ve covered this in the channel uh a while ago and some videos I did in the past um when the whole dollarization thing really started to kick off and yeah it’s very likely that they have uh more precious metals than they’re letting on I think most of the western powers in the IMF probably report fairly accurately I I guess it’s possible the US doesn’t have what it says it has but I think probably more likely than not it does I know there’s a lot of conspiracy stuff out there about that but uh nothing provable from my research although there you know there’s some questionable things there like it hasn’t been audited again um in in some time or the audits have been you know under some kind of suspect uh circumstances okay Jeff says it is showing 19 million Troy onces of silver reserves where are those reserves um that’s a great question precious metals reserves I believe that those reserves that it is referring to are the reserves in the ground um not 100% sure about that again I haven’t really looked at this tab anybody knows leave it in the comments down below or put it in the chat if you’re watching live um I believe what this is referencing though is uh reserves in the ground because this is World precious metals production and then the production change in the reserve so I think that that’s like proven reserves or probable reserves or something like that that the miners have um in the ground I hope that helps but yeah I mean by and large most of the data on the US Deb clock uh is provided with citation at least on the main page you can Mouse over stuff and it’ll tell you where it’s getting the data from but yeah I mean this probably us Geological Survey data or something like that and with regards to Silver reserves that are above ground nobody really knows I’ve seen a lot of different figures on that like 2 billion ounces 5 billion ounces um it won’t really matter because uh we know that more silver is being consumed than is being produced and when the flight to Safe Haven assets occurs this is important when the flight to physical Metals takes place it’s not that all of this silver that’s being held you know by private investors and things like that is going to flood into the market I mean maybe if the price absolutely skyrockets but typically with uh you know a flight to safety and a speculative Mania what you’re going to see is the higher the price goes the more people want it right so regardless of how many of those reserves are out there there’s there’s not enough to go around right you got a what 8 billion people on the planet right now and there’s not likely that many ounces and a lot of those ounces are probably concentrated um in a few places and certainly you know I wouldn’t trust the the data from the comx from the lbma the lme it’s very likely that they overstate how much physical metal they actually have I’m not really going to get into it today I mean we’re already going on almost 30 minutes but the important thing when silver breaks out is going to be how much silver you have in reserve right how many ounces of silver do you have stacked because that is going to give you a lot of options I don’t know how will play out right I mean it could be a a sharp breakout up and then things move along normally just with higher prices maybe the prices will Spike up in a huge bubble and then they’ll come back down maybe the dollar will lose its status is the world Reserve currency and dollar price will simply become unimportant I mean there’s a lot of things that could play out here but the good thing is that having physical metal like a kilo bar of silver the more of those you have stacked up the more optionality you have when it comes to you know how you can respond to any of the crises which are likely ahead I I don’t know what’s going to prick the bubble the huge debt bubble the huge fiat currency bubble that we’re living through but very likely it will get pricked and when that happens having some physical precious metals on hand will be a huge Boon to those of us who are prepared uh leave me a comment down below to let me know if you agree with that if you do agree with It smash the like button and you know if you don’t think you need to hold physical silver smash that like button anyway you’ve made it thus far to the end of the video you must have enjoyed something about it so please smash that like button and anyway uh thanks for watching Everybody very exciting times it’s going to be interesting to see what happens with the price of silver moving forward but if you ask me we are headed for higher prices much higher prices probably in very short order and uh thanks Jeff for the the channel memberships and for all the support and for everybody who supports this channel by sharing the videos liking the videos tell your friends you know uh help spread the information they will likely thank you when the time comes so anyway that’s it for today everyone stay safe and happy stack and I’ll catch you next time smart

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