Is the rally over for Silver and Gold?
dreamstime.com
The past few weeks have been a lot of fun watching the silver prices shoot up the charts right into the stratosphere. But as always happens during a rally, the surge has to come to end eventually. After hitting an all time high of around $84, it has pulled back to $72 in a correction that was bound to come eventually. Have a look at the chart for the last five days:
From kitco.com
As you can see the pullback was a steep decline largely due to profit taking. It's always a smart idea to take profits on your investment along the way and no one can be faulted for that in the least. Does that mean that the silver run is over? In my opinion no. We see profit taking all the time in crypto and other markets only to be followed by more bullish sentiment in the days that follow. In reality, silver might actually be "on sale".
The shortage of silver hasn't gone away, and won't be going away anytime in the near future. There is so much industrial demand that the refiners can't keep up with it. Many big companies are inking deals directly with silver mines to buy direct from the source to avoid "middle man" fees. Don't forget that silver is inside of every computer and smart device you own, and can't be produced without it. Automobiles are also made with silver, and wouldn't run without it. X-ray films require silver as do many medical products.
The demand is stronger than ever. I believe we will see silver start to increase in price again once panic sellers are out of the market. Then those profit takers will likely buy back in a the lower price for the next surge upward. It will be interesting to see what happens in the this next week!
Gold
Gold also took a pummeling pricewise from profit taking. Again, a normal behavior when we see any asset hitting all time highs. It doesn't change the underlying fundamentals or demand for the yellow metal. Central banks are still actively buying gold around the world, and most of them have relatively low reserves at the present. They will continue to bid and buy without worrying about prices and their bids are likely being filled by this drop in prices.
Here you can see the pullback on the chart for gold over the last five days:
From kitco.com
The world is still very unstable and economies around the globe teetering on recession from debt. Europe is still very concerned that Russia might yet provoke a regional war. That of course would lead to a world war, the last thing anyone wants or needs. All of these factors will continue to drive the prices of gold upward. This might be a good reentry point for investors preparing for the next drive up the charts.
Of course keep in mind I am not a professional advisor and have been investing in precious metals since I was young. I won't be stopping anytime soon either! Gold and silver are real money and have been since the dawn of time. They aren't going away and people will continue to buy them to build and maintain their wealth. It's always a good time to invest in precious metals!
That will wrap up my post for today! I do hope you enjoyed it and please feel free to leave any comments or questions below. Thank you everyone for all of your support, I really deeply appreciate it. Have a great week everyone!
References:
https://www.kitco.com/charts/silver
https://www.kitco.com/charts/gold
Disclaimer
I am not a financial planner and this isn't financial advice. Please always do your own research before investing your money. You worked hard enough to earn it!
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I agree. I don't think the rally is over either, but that $10 jump in one day was just a bit too much to sustain.
With China limiting exports of silver come Jan 1 we may see more of those jumps in the near future. We really need to start mining a lot more precious metals here in the states or China will keep using export restrictions against us...
Ah, that is a good point. I guess I don't pay enough attention to the global stuff like that!
I've way overpaid on a pair of 2026 Maple Leafs but I feel bad about it at all knowing silver has a lot more running room to go and that this is a needed pull back of some form before continuing it's run. Anyway, it gave me the Markets opening to add to my Silver ETF position (NOT SLV ETF) because Mommy would like a new pair of punk boots. Besides, I get the feeling the 2026 MLs will be a low mintage, and I'd rather have them now than chance of not able to get any later.
!PIMP
I think it's a good move, and if they come out low mintage you could really clean up! Plus silver is likely going to pump a lot come Jan 1 when China starts restricting silver exports! With some high silver prices you might be able to get those punk boots soon!
!PIMP
Hi thebighigg, for now, I think we can say that the recent decline is a normal technical pullback. Silver and gold are currently at very high levels, and I can't find the strength to buy them. Bitcoin could stop falling and slowly rise towards $150,000. I feel very sorry for HIVE. Today it's $0.1, a figure I never expected. In a year, HIVE has fallen 72%. I have no doubt that Bitcoin will eventually reach new highs, but I have doubts about HIVE.
Silver and gold are going to explode in 2026. Will BTC? Maybe. Will Hive? Probably not, it's in real trouble from inflation and nothing is really being done to control it. Hive may drift towards $0.05 the way things are going which is really sad.
Wow!!! You seem very confident that what you said about HIVE will happen! I don't think it will reach $0.05, but it seems like you know this blockchain technology better than I do. We'll see what happens in this 2026 that has just begun. perhaps the blockchain-based social network is doomed to fail forever !BEER
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Well. I always tell folks. "When in doubt, zoom out" on the chart. Just look at the 10 year pattern. Or zoom out even more especially the gold chart. We always have dips, they always go up. My whole life. Could be different this time I suppose...
Things are far from over, it's going past $100 sooner than later!
They also raised the margin requirements on a 5000 ounce silver contract on the CME from $20,000-$25,000 on Friday!🙄
According to ChatGPT this is common practice when the market starts to get overheated to cool things down a bit........
Hmmm.......🤔🙄
They always try to cool down the markets, but with China restricting export of silver come Jan. 1 prices are about to go insane!
I just read that as well, plus the fact that we're still having shortages of physical silver.... I think they are going to get caught in the squeeze Lol!!😇😅
The rally isn’t over. It’s on pause, they are trying to get people to panic sell. Be patient
I agree, it's already rallying back up. It's not over by a long shot!
!PIMP
Over? Not a chance. Maybe the mania is though.
!BBH
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With China limiting release of silver out of the country come Jan. 1, things are going to go insane once again...
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I should have taken the opportunity to sell some but I'll just hold.
It's going much, much higher yet. China is going to limit export of silver come Jan 1 and they produce the most in the world. Prices are heading over $100 before too much longer!
Heck, I may just sell some if it gets above $100
I think there is still FOMO goin going on.
not sure how long will the rally will go, btu for sure my chance of ownign silver is gettign slimmer. ; (
!PIZZA !LOLZ !LUV
There's always FOMO, but the rally is far from over. I expect to see silver past $100 in the very near future!
!PIZZA
!LOL
!BBH
https://www.reddit.com/r/Gold/comments/1pz2gzc/gold_pullback_is_this_a_good_buying_opportunity/
https://www.reddit.com/r/MetalsOnReddit/comments/1pz314w/gold_pullback_is_this_a_good_buying_opportunity/
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