At the end of October last year, when silver first touched the long-term pressure range of 34.68/36.55, the trend for the next few months was already anticipated, entering a long cyclical fluctuation range.
This range must ultimately be broken, and from the chart, the possibility of an upward breakout is clearly very high.
Silver has not advanced alongside gold in the past two years; its industrial properties are well-known, and its rigid demand is limited. In a macro environment, the fluctuations of silver are not prominent among asset classes, which is why it is mentioned separately for a reason.
The trend of silver is very healthy; the consolidation is for the upcoming breakout. However, how strong the trend of the breakout can be is a question worth discussing. With so many asset classes to choose from, why is silver considered to have stronger certainty?
I remember seeing news about Samsung developing silver batteries in 2018. At that time, the news came and went quickly, as lithium batteries were still just learning to walk, silver batteries were just something to listen to.
Recently, while capturing factors for shorting gold, I also looked at the gold-silver ratio XAU/XAG.
Looking back at silver, I suddenly remembered this news.
The logic moving forward is quite simple. For example, now batteries catch fire easily, have short endurance, and wear out quickly. Nothing is perfect. Historically, major technological breakthroughs have always been at the forefront of significant societal pain points.
I remember that the stability of silver batteries mentioned back then was absolutely king-level.
For silver to enter a super bull market, there must be a breakthrough in huge applications. Currently, it seems that besides silver batteries, there is no other.
One thing I always say is that the current price you see is the result, not the cause. You see that Samsung is developing it, perhaps countless other companies are also in development. In other words, once the demand point for silver is pried open by new energy, the sky is the limit, no doubt about it.
Of course you say there are short-term impacts, right? That's certain, but these factors before the key technological breakthroughs of the industrial revolution were hardly a ripple; you need to learn to filter out the short-term.
My thinking is quite simple now, short on gold, long on silver.
I can only imagine, but I can't visualize how far silver can go. However, the fundamentals of silver combined with its price trends caught my eye immediately after my extensive experience; it should be one of the most certain assets among various asset classes.
Perhaps only 'Above the Bubble' would say silver is in a super bull market!
Protecting originality is everyone's responsibility!
