close
close

“The Silver Crisis Has Officially Begun” Jesse Colombo Silver Analysis

Posted on by Kennedy
“The Silver Crisis Has Officially Begun” Jesse Colombo Silver Analysis

In a dramatic turn of events, the silver market experienced a significant breakout, potentially signaling the start of a long-awaited uptrend. Financial analyst Jesse Colombo reports that after months of stagnation Silver prices rose nearly 7% on Fridaybreaking through key resistance levels and setting the stage for what some are calling a “Silver Squeeze.”

Key Takeaways:

  • The silver price closed well above that Resistance level at $32.50
  • Trading volume more than doubled the previous week's average
  • Experts predict a possible run $50 per ounce short term
  • Bullish fundamentals include industrial demand growth and declining global mining production

According to Colombo's detailed analysis, the silver market has been preparing for this breakout for months. “I encouraged investors to remain confident as I believed silver was on the verge of a… historic bull market“, Colombo explained. His prediction appears to be coming true as the market shows signs of a strong bullish trend.

The outbreak was confirmed by several key indicators:

  1. The silver price in euros closed above Resistance level €30
  2. Gold, a key driver of silver prices, is showing strong momentum
  3. Silver mining stocks, which often reflect investor sentiment, have also broken out of their trading range

Colombo highlighted the potential for a short press in the market, noting: “Swap dealers – mainly bullion bank trading desks – are holding their positions Largest net short position in eight yearsa total of 38,832 contracts. This is equivalent to approximately 194.43 million ounces of silver 23% of annual global silver production.”

This large short position could lead to further price increases as traders scramble to cover their positions. “Given the current size of their short position, gold banks are almost facing a crisis $200 million in losses for every dollar it grows in the price of silver,” explained Colombo.

Colombo's Conditions for Silver Breakout Confirmation

In his analysis, Jesse Colombo outlined several specific conditions that he believed would confirm the next leg of the silver rally. These conditions provide a framework for understanding current market dynamics:

1. Spot price breakout: Silver spot price needs to close decisively above the $32.50 resistance level supported by strong trading volume. This condition was met on Friday with silver rising 6.38% and trading volume doubling.

Silver breaks above $32.50 resistance (Source: Jesse Colombo / TradingView)

2. Price denominated in euros: The silver price in euros must close well above the resistance level of €30. This condition was not only met, but exceeded, with silver closing above €31.

Silver: resistance level €30 (Source: Jesse Colombo / TradingView)

3. Synthetic silver price index: A Colombo-developed index that averages gold and copper prices is expected to close above its key resistance zone between 2,560 and 2,640. Although this condition was not fully met, Colombo noted that the index recorded a solid increase of 1.21%.

Synthetic Silver Price Index (Source: Jesse Colombo / TradingView)

4. Dynamics of the gold price: Gold, as an important driver of silver prices, should show strong upward momentum. This condition was met when gold broke through two key resistance levels since September.

Gold Spot Momentum (Source: Jesse Colombo / TradingView)

5. Copper price support: Although not a direct condition, Colombo noted that it is important for copper prices to find support around the $4.25 level to provide additional impetus to the silver rally.

Copper Price Support (Source: Jesse Colombo / TradingView)

6. Silver mining stocks: A strong, high-volume close above the $36-$38 resistance zone for the Global X Silver Miners ETF (SIL) would suggest that both silver and silver mining stocks are poised for a major breakout. This condition was met on Friday.

Silver mining stocks support $36-$38 resistance zone (Source: Jesse Colombo / TradingView)

7. Gold-silver ratio: A breakdown in the gold-silver ratio, particularly a close below the 83-84 support zone, would confirm the start of a silver rally and its outperformance over gold. This condition was also met on Friday.

Gold to Silver Ratio – Silver is currently significantly undervalued compared to gold (Source: Jesse Colombo / TradingView)

Colombo's comprehensive analysis of these conditions gives investors a clear picture of the current dynamics of the silver market. “Silver’s technical and fundamental drivers are aligned,” Colombo explained, “suggesting that the price could move significantly higher and potentially reach levels not seen in decades.”

Silver market fundamentals also contribute to the optimistic outlook. Industrial demand has increased while global mining production has declinedwhich leads to a structural deficit of the last four years. The Silver Institute predicts a deficit of 215.3 million troy ounces for 2024further shortage of supply.

As the silver market continues to develop, both investors and industry observers will be keeping a close eye on price movements. With both technical and fundamental factors aligning, the stage appears to be set for a potentially significant upside in the silver market.

“The potential for explosive profits “has never been clearer,” Colombo concluded, hinting at the possibility that silver prices could reach levels not seen in decades.

As always, investors are advised to conduct their own research and consult financial experts before making any investment decisions.

Source: Jesse Colombo

Jesse Substack newsletter

Follow Jesse on X

Follow on YouTube

Complete Silver Price Analysis from Jesse:

Selected gold and silver investment companies (Advertisement)

“Best Overall” by Money Magazine, award-winning for 6 years, thousands of 5-star rankings

Expand Details

Known for its exceptional customer service and commitment to transparency, Augusta Precious Metals has received numerous awards including “Best Overall” from Money Magazine and “Most Transparent” from Investopedia. The company's commitment to educating and supporting its customers has earned it top ratings from organizations such as A+ from BBB and AAA from BCA.

Industry leader with over $2 billion in gold and silver. First-class precious metals company with a buyback guarantee

Expand Details

From precious metals installments to direct purchases of gold and silver, Goldco has helped thousands of Americans invest over $2 billion in gold and silver. Top rated precious metals company, rated A+ by the Better Business Bureau, triple rated by the Business Consumer Alliance, and received over 6,000 5-star customer reviews Money.Com 2024 best customer service 2024 inc. 5000 Regionals: Pacific Ranked #17 in 2024 Gold Stevie Award, Fastest Growing Company Inc. 5000 Honoree, 8+ Years

American Hartford Gold, ranked #1 Gold Company on the Inc. 5000, has thousands of A+ BBB ratings and 5-star reviews backed by Bill O'Reilly and Rick Harrison.

Expand Details

With over $2 billion in precious metals sold, American Hartford Gold helps individuals and families diversify and protect their wealth. Their team of experts provides investors with the latest market insights and a historical perspective, ensuring informed decisions. The company is trusted by public figures and praised for its exceptional customer service. It offers competitive prices on premium gold and silver coins, backed by a 100% customer satisfaction guarantee

This article is for informational purposes only. The opinions and analyzes contained herein are those of the author and do not constitute financial advice. The Jerusalem Post (JPost.com) does not endorse or recommend any investment based on this information. Investors should consider their financial situation, investment objectives and risk tolerance before making decisions. It is recommended that you consult a qualified financial advisor. JPost.com is not liable for any investment losses resulting from the use of this information. The information provided is for educational purposes only and should not be considered trading or investment advice.




Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *