How High Can Silver Fly?
-Ted Butler, Senior Analyst
The silver price plunged 7% to $48 on Tuesday this week, marking the first real hiccup in a relentless rally that culminated with a nominal all-time high above $54 last Friday.
Since that healthy correction, the white metal has reacquainted itself with $49 and now appears to be entering a period of high-level consolidation before the next leg-up.
In the meantime, it’s possible that silver’s volatility exposes investors to some short-term downside, with a moderate Fibonacci retracement toward $43 not entirely out of the question.
However, with the gold-silver ratio still historically high, and with many of the catalysts behind silver’s surge beyond $50 still in play, most investors remain squarely focused on silver’s upside.
With this in mind, today’s article will aim to answer the question: How High Can Silver Fly?
https://www.kitco.com/charts/silver
To understand the degree to which silver could outperform, we first need to ascertain the extent to which it’s undervalued, overvalued or fairly valued relative to historical bull cycles.
Fiat currencies are an extremely poor measuring stick for this task due to their inability to hold purchasing power, so gold remains the optimal lens to apply when valuing the silver
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