Silver Futures Index $SILVER (SILVER)

[DiscoverGold]

Is Silver a Sleeping Giant?
By: Barchart | March 3, 2024

It has been a while since I have written about silver because there has been little to report. In my December 12, 2023, Barchart article on silver, I highlighted why 2024 could be a “silver bonanza.”

The active month COMEX silver futures contract was trading at $23.04 on December 12. In early March 2024, the price was slightly lower. I remain bullish on silver’s prospects, but the price action has been nothing short of comatose.

A marginal 2023 gain

While nearby COMEX gold futures gained 13.45% in 2023, silver futures only managed a 0.19% rise. The continuous contract gold futures closed last year at $2,071.80 on December 29, 2023, and were 0.73% higher at the $2,086.90 level on March 1. Silver futures closed last year at $23.583 per ounce and were 1.84% lower on March 1 at $23.15 per ounce.

Silver underperformed gold in 2023 and lags the leading precious metal in 2024.

The silver-gold ratio provides few clues

In the December 12, 2023, Barchart article, the silver-gold ratio was just below 87:1.



On March 1, 2024, the ratio ({GCJ24}/{SIK24}) edged higher to just above 90 ounces of silver value in each ounce of gold value. Silver’s underperformance compared to gold pushed the ratio marginally higher and remained above the average since the 1970s. While the ratio has edged higher, it provides no clues as to the path of least resistance of silver prices, which remain in a tight trading range...

* * *

Silver is an undervalued asset based on gold’s price performance. If gold continues to rally and silver can break above technical resistance at the $26 per ounce level, the buying herd could push metal and mining share prices substantially higher. Meanwhile, as the trading range narrows, silver’s potential means the precious metal could be a sleeping giant at the current price level.

Read Full Story »»»

DiscoverGold