Yardeni Research President Ed Yardeni discusses his outlook for markets amid the coronavirus pandemic.
Silver prices have just made their biggest weekly advance since the Lehman Brothers collapse in 2008, but the rise has been largely overshadowed by lower gains in gold prices.
The least valuable metal rose 20 percent over the past week to $ 23 an ounce, an increase of more than 94 percent from its bottom below $ 12 in March and a 28 percent increase so far this year. .
“With a relatively flat positioning, silver stands out as a recovery operation,” wrote Paul Ciana, technical strategist at Bank of America.
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He noted that silver formed a “big base” while trading laterally over the past five years and believes the metal is ready to “catch up” with the long-term performance of gold and the S&P 500, which have both hit highs. historical in 2020.
For now, silver is still trading 50 percent below its 2008 financial crisis peak of $ 46.08. The precious metal hit a record high of $ 48.70 when the Hunt brothers attempted to corner the market in January 1980.
“Silver is commonly viewed as the poor man’s gold,” said Ed Moy, chief strategist at gold retailer Valaurum and head of the US Mint from 2006 to 2011.
More expensive to start with, gold has recovered only 28 percent from its March low to $ 1,900 and has risen 24 percent so far this year.
The precious metal is currently valued at more than 82 times the price of silver. The index has averaged 64.48 since 1980, falling as low as 14.81 and rising to 125.89, according to Dow Jones Market Data.
That number will decrease if the technical analysis of Ciana’s charts is correct. He sees silver pointing to $ 26.22, $ 30.73, and possibly even $ 35.23 an ounce, or 53 percent above current prices.
Ciana also projects gold to peak at $ 2,296 per ounce, or 21 percent above its current level.
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“When gold goes up $ 10, yes, you can make a lot of money off it,” said Moy. “When silver goes up $ 10, you can make a lot of money.”
