Is Silver Ready to Breakout?

According to Noble Laureate Milton Friedman the majority of monetary metal throughout history has been silver, not gold. Silver is the word for money to 250 million people in 51 countries across the world and historically gold has been the money of kings while silver is the money of the people.

Recently the topic for debate has become “Is Silver than Gold as an Investment?” and the true answer lies in the future of the potential monetary value of the metal. Gold is hoarded while silver is used freely in industrial applications and small monetary units (nickels, dimes, quarters, etc). The spot price of silver like any other medium of exchange will fluctuate with the laws of supply and demand. So if silver is becoming for scarce, while the industrial demand increases..does this mean silver is ready to breakout?

A look at the long term historical trend shows silver consistently on the rise and on a percentage basis outperforming any other commodity in the last decade. In the past, just before a breakout there have been times of pullback and consolidation and during the last month we have seen a similar pattern.

By studying the patterns in this chart we can see that when silver does breakout from it’s current pattern of consolidation it may be on a noticeable upside again. To gain more insight on Silver as an Investment read 5 Things Every Silver Investor Should Know