Ingredients For A Silver Breakout Are All There, Says This Analyst
(Kitco News) - It is all about “getting the silver direction right,” according to one analyst, who says he is “uber-bullish” on silver at the moment.
“I really like the silver set-up. It is not because I am a silver bug. I am perfectly agnostic when it comes to metals,” The Independent Speculator principal analyst and editor Lobo Tiggre told Kitco News on the sidelines of The Prospectors & Developers Association of Canada (PDAC).
Tiggre pays close attention to the precious metals’ cyclicality, advising investors to buy low and sell high, noting that 2019 is looking more and more like silver’s year.
“Silver bugs rejoice, I am very bullish on silver this year because I am bullish on gold. And where gold goes, silver follows. When the precious metals break out, gold leads and then silver goes off,” he said.
Investors must also keep in mind that silver is more volatile than gold, Tiggre added. “And if gold is going to go up, silver will go up more. I’m uber-bullish on silver.”
All the ingredients for a price breakout are there, the analyst pointed out. “2019 could be the year we finally break out of this range that we’ve been in … in gold terms, between $1,200-$1,400. We have both the fear trade and greed trade potential playing into precious metals this year,” he said.
Tiggre is not setting a specific target either, stating that it is all about getting “the direction right,” while adding that the gold-silver ratio has zero predictive power in terms of price direction.