Silver looks like one of the clearest cases of mispricing in the current commodity supercycle. Fundamentally and from a demand-growth standpoint, silver is extremely strong, yet the market continues to price it as if the metal were abundant and optional, not structurally tight and increasingly indispensable.
The gold-to-silver ratio tells the story clearly: with gold around $4,065/oz and silver around $50/oz, the ratio sits near 81:1, far above the post-1970 historical mean of roughly 60:1. Historically, deviations above 75–80 have tended to be temporary dislocations that lasted 4–12 months before mean-reverting violently. In many such cases, the reversion came not from gold falling, but from silver accelerating upward at a much faster rate.
That setup is now repeating.
Technically, silver is sitting at a compelling entry zone. On the short-term structure, the metal has already broken above its downward corrective A-B-C channel, completing the C-wave at approximately 0.786 × Wave A rather than a full 1.0 extension, showing buyers stepped in early and with strength. This is often a hallmark of a developing impulse structure.
Price has also double-topped near the marked purple resistance around $54.50, which could be used as a short-term trade resistance or a long-term buying opportunity. A decisive breakout above this level with strong volume would confirm the beginning of a much larger impulse, which aligns cleanly with the broader Wave 5 interpretation on the 1-day chart. That gives the setup both:
- a macro-ratio tailwind, and
- a technical pattern showing the early phase of a bullish expansion leg.
Silver is acting like a coiled spring: ratio extreme, structural demand pressure, and impulsive wave dynamics all point toward a potential accelerated repricing phase.
The gold-to-silver ratio tells the story clearly: with gold around $4,065/oz and silver around $50/oz, the ratio sits near 81:1, far above the post-1970 historical mean of roughly 60:1. Historically, deviations above 75–80 have tended to be temporary dislocations that lasted 4–12 months before mean-reverting violently. In many such cases, the reversion came not from gold falling, but from silver accelerating upward at a much faster rate.
That setup is now repeating.
Technically, silver is sitting at a compelling entry zone. On the short-term structure, the metal has already broken above its downward corrective A-B-C channel, completing the C-wave at approximately 0.786 × Wave A rather than a full 1.0 extension, showing buyers stepped in early and with strength. This is often a hallmark of a developing impulse structure.
Price has also double-topped near the marked purple resistance around $54.50, which could be used as a short-term trade resistance or a long-term buying opportunity. A decisive breakout above this level with strong volume would confirm the beginning of a much larger impulse, which aligns cleanly with the broader Wave 5 interpretation on the 1-day chart. That gives the setup both:
- a macro-ratio tailwind, and
- a technical pattern showing the early phase of a bullish expansion leg.
Silver is acting like a coiled spring: ratio extreme, structural demand pressure, and impulsive wave dynamics all point toward a potential accelerated repricing phase.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.