Getting On Board The Silver Express

Over the last half year or so, a number of analysts, well-heeled individuals, and mega-hedge fund managers have been taking a shine to silver. So far the "restless metal" hasn't been letting on that it's noticed.

It's understandable why someone who either has not yet begun to commit funds to building a physical silver position – or who has not completed his or her ownership program – might think it best to wait and see if the price starts rising, thus validating the silver bulls' call. But this kind of strategy could end up being a big financial mistake on several counts.

And worse yet, Mr. Market could decide to whisk away today's prices – and the relative availability of investment grade silver – to the point that you'll never even take a position at all.

To get a sense of how you might feel as you watch, and watch, and watch while silver makes it's long overdue, third, and almost certainly largest levitation toward the ultimate high since the start of its rise in 2001, please examine the palladium chart below.

alladium Chart Mar '20

10 Year Monthly Palladium (Courtesy barcharts.com)

After spending 5 years in a $300 price range, palladium decided in December 2016 to put in a long-term bottom around the time that gold and silver were doing something similar.

Then, again like gold and silver at the time, it rallied, moving to several years' high around $850... but kept ongoing. Gold and silver faded away for the next 18 months, putting in a double bottom in late 2018.

In January 2018, palladium seemed to build out a major top around $1,150 – almost exactly where it had done so twenty years before! Just about everyone (me included) watched with trepidation as that level once again turned back prices and the metal declined by over $300.

What happened next will be something chartists ponder for a long time to come. Within a matter of months, palladium proceeded to easily punch through that old $1,150 "top"... and to this day, almost 18 months later – continues to rise, seldom pausing, to, at this writing over $2,550... more than twice as high as it had ever traded before!

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