Stock House: Silver Is Still A Must-Buy at These Levels

Article by Hubert Moolman in Stock House

We are coming into the traditional season for intense silver rallies. With silver recently making a really important breakout, things are setting up for a memorable period in the silver markets.
 
Furthermore, the decision to buy silver for the long-term is basically a no-brainer given that the Gold/Silver ratio is still around 80.

With the ratio still being around 80, it is still currently a great time to load up for the coming years.
  
The first phase of the silver bull market was from 1993 to the end of 2001, and the second phase is potentially from 2001 to the end of 2015.

It appears that there is a similarity between the two phases. I have drawn some lines and marked some patterns to show how they could be similar.

The first phase is marked 1 to 3, in black, and the second 1 to 3, in blue. Both of the phases appear to occur within in a broadening channel, from which they both broke down, after point 2.

Now price appears to be after the start of a new point 1, and a breakout from the wedge has been confirmed.

If the comparison holds true, then we could see a massive rally over the coming months that would likely make new all-time highs.

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