The Gold IRA Company

Economic Times: Why Silver May See a Massive Rally After Underperforming for 6 Years

Article by Aasif Hirani in Economic Times

Silver is expected to witness a big rally. History shows that once silver gives a positive return in a year, it tends to stay in the green for at least two more years. This August, the bull cycle started in silver.

Silver prices moved below 50-MMA in 1988 and closed above it in 1993. The price at that time was $4.7. From there it made a high of $6.8 in 1998, giving a return of 44 per cent in five years. From 2000 till 2003 it remained below 50-MMA and then in 2004, it breached above this average around $5 an ounce.

The price rallied till $21 in 2008 giving a return of 320 per cent.

In 2009, again prices closed above this average around $12 an ounce and rallied till $49 an ounce in 2011 giving return of 308 per cent in a span of two years. That is a massive return in any asset class in such a short period.

In 2013, silver price closed below 50-MMA and now finally in August, silver has price closed above this level.

Silver traded below 50-MMA for the period of 6.5 years (longer than historical average underperforming time). So we expect a minimum rally of 50 per cent.

Silver has already given breakout at $16 an ounce and is currently trading at $18, giving a return of 12.5 per cent in 2 months.

This is why we are bullish on silver from here on and expect prices to more than double in the next 2-3 years.

To read this article in Economic Times in its entirety and see the relating charts, click here.

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Although the information in this commentary has been obtained from sources believed to be reliable, The Gold IRA Company does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice. The Gold IRA Company will not be liable for any errors or omissions in this information nor for the availability of this information. All content provided on this blog is for informational purposes only and should not be used to make buy or sell decisions for any type of precious metals.