Our favorite chartist Clive Maund says: ‘After a long corrective phase lasting two to three years, silver is at last ready to begin a major new uptrend… There is a strong resistance to confront at the $26 level, but once it is taken out it should then continue on to challenge its highs in the $50 area, overcome them and then traverse ‘blue sky country’ to target the upper trendline shown’:
The exact timing of such moves is impossible but this trend will definitely be a momentum trade for many investors. Indeed, it should be impossible to go far wrong with anything to do with silver.
That has certainly been the case for the New Year recommendations in our sister ArabianMoney investment newsletter. The next issue will review the performance of our precious metal plays and what represents the best investment strategy going forward (subscribe here).
The important thing to appreciate is that this is just the start of a new uptrend so now is the time to load up on these assets. But don’t hang around for too long, you are unlikely to be alone in spotting this trend…