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Silver is Also a Precious Metal

March 10, 2024

Mish's Daily

By Mish Schneider

Not the first time I have given readers this list of leading indicators to watch for a potential rise in inflation:

Silver-and if it can begin to outperform gold
Oil, if spikes over $80 a barrel
Sugar, if even with increased production begins to move up back over 23 cents a pound
The dollar if fails 103 and selling pressure returns.

Earlier in the week we focused on sugar.

For the weekend, let’s focus on silver.

The dollar, also on the list, trades under 103 yet into support at 102.50 area. Let’s assume for now, the dollar will have issues getting back and staying over 103.

That is bullish for metals.

As far as silver itself, why it is so important to watch is that with gold rallying, silver is also catching bids.

However, it is when silver outperforms gold that we start seeing 1979 all over again and a rise in inflation-this has not happened yet.

With Friday’s jobs report and on the heels of Powell’s speeches this past week, the consensus is that rates could drop come June-a catalyst for inflation?

Perhaps.

Silver though, is a bit more complex.

There is, like all commodities, a supply and demand component.

The supply side is mainly influenced by mining output and whether it can keep up with demand (used in solar panels, cars, manufacturing).

Then there is scrap silver, a huge component of recycling.

On the demand side though, here is where price pays.

Besides during periods of economic growth, during inflationary times, silver demand can not only remain stable, but it can also grow as an investment demand.

That is precisely why we are watching.

I include 2 charts.

One is the ETF SLV, and the other is cash futures.

The SLV chart shows silver clearing the January 6-month calendar range. Bullish.

The Real Motion Indicator shows rising momentum and a new yearly high, as does price.

However, on the Leadership indicator, using GLD as the benchmark, silver continues to underperform.

On the futures chart, while momentum improves there, it has yet to meet last Decembers peak of momentum-that could mean we have not seen anything yet on price.

So, to get excited from here, silver futures needs to clear back over $25.00 an ounce.

Nevertheless, silver (and gold) should have your attention.

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Mish in the Media - All clips here

Benzinga Pre Market Prep Market thoughts and why Mish likes certain key instruments that could be the next big winners Begins minute 39. 03-08-24

Synergy Traders-How to Identify the Next Magnificent Leaders-A webinar-want to know more why outperformers outperform and how to profit on that? This is a webinar 03-06-24

Business First AM The Vanity Trade-brought to you on International Women’s Day-what will next consumer trends be 03-08-24

CMC Markets Where to bullish and where to be negative using short term and longer-term biases 03-06-24

Business First AM Money Pouring into Gold and Silver 03-05-24

The Technical Take Stockpick.app Mish debuts with a look at SPY Gold Silver and Warning Signs 03-04-24

Traders Summit with Blake Morrow Stock Pick and Market Predictions 03-04-24

Real Vision 3 Trades Holden and Mish talk Bitcoin, Ethereum, Solana and Coinbase with actionable information. 03-01-24

Coming Up:

March 12 Your Daily Five Stockcharts

March 15 Jim Pupluva Financial Sense

Weekly: Business First AM, CMC Markets, and new to us-stockpick.app

ETF Summary

S&P 500 (SPY) 510 pivotal-as in below could see more correction