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The short answer: nothing is wrong with silver. The long answer is documented in our recently published silver forecast 2024 deep dive combined with our silver shortage analysis. 

It is becoming blatantly clear how undervalued silver is. Moreover, in November, gold became a crowded trade, it ended with a sell-off on Sunday night, December 3d, 2023. Our point of view is that silver was pushed lower by commercial traders in the futures market, on Sunday night / Monday morning, which pushed silver lower as well. However, leading indicators combined with the growing physical silver market supply deficit will ensure that silver recovers, sooner rather than later. 

1. The Bullish Signals: A Silver Lining in Forecast Analysis

At InvestingHaven, we apply a forecasting methodology for gold and silver price analysis based several leading indicators. Acknowledging the complexities of market predictions, we derive a resounding bullish stance on silver. 

Forecast analysis for 2024 suggests a trajectory toward $28 per ounce, a level poised to break through secular resistance. The analysis ties this surge to 10-year Yields, the last frontier obstructing silver's ascent. Should silver conquer $28, an expedited rise to the $32-$36 range will be next, projected for the first half of 2024.

2. Silver Chart: Silver's Path to $34.70 and All-Time Highs

Silver's historical chart reveals a compelling chart narrative. A giant cup-and-handle pattern spanning 50 years signals a potent bullish trend. The handle, formed over the last 3 years, anticipates an upward surge toward $32-$36 in early 2024. Chart analysts point even higher, eyeing potential upside targets of $34.70 and $44 before testing all-time highs.

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3. Physical Silver Shortage: A Growing Market Imbalance

Recent reports highlight a tangible imbalance in the silver market. Production losses at major mines, particularly the Penasquito mine, contribute to a decreasing total silver supply. In contrast, non-investment demand, propelled by industrial use, hits an all-time high. With total silver mine production at its second-lowest in a decade, the stark undervaluation of silver becomes evident, setting the stage for a potential supply shortage.

4. Epic Divergence: Price vs. Reality

While silver's price hovers, seemingly unmoved, the physical silver market tells a different story. A mere 123 million ounces remain for silver investors after accounting for non-investment demand. This limited pool, valued at less than $3 billion, starkly contrasts the trillions circulating in global investment markets. The epic divergence between the current price and the growing supply shortage suggests an imminent resolution in favor of silver's price.

Conclusion: Silver's True Potential

Based on silver market dynamics, a looming shortage emerges as a ticking time bomb. Despite the games that are being played in the COMEX silver market, with commercials pushing prices consistently lower every time speculators (managed money traders) increase their net long positions, there should be a point in time which in which the law of supply and demand inevitably prevails. 

As the silver market approaches a true supply shortage, its true potential awaits, ready to reshape price-setting dynamics and elevate silver to new heights. So, what's wrong with silver? Perhaps nothing – it might just be on the cusp of a significant transformation, waiting for the right moment to shine.

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