Silver’s Breakout: Is This the Start of a Major Bull Run?

Silver is putting on strong gains this morning, with the spot price rising more than 3% in early trading. The precious metals bull market is not dead after all.

After consolidating in recent weeks and falling to support at the upward trend line pictured, the white metal appears ready to begin it’s next move higher.

Some analysts have warned that this move could be a bull trap. While I do believe caution is still warranted here, a confirmation of the silver breakout could soon be provided by a declining US Dollar Index.

The dollar has been on a real rip following the election of Donald Trump, but now the rally is looking rather overdone as the DXY has approached a level of strong resistance. A sharp drop now in the DXY could lead to a blistering rally in the metals on the heels of their recent correction.

While some optimism regarding the US economy may be warranted by a change in leadership, we must not forget the fundamental picture for the dollar remains grim.

The US National debt recently set a rather ominous new record, reaching the eye watering level of $36 trillion dollars. Next stop $37 trillion.

Regardless of who occupies the White House, it seems that one of the few things both parties can agree on is the massive and inexorable expansion of debts and deficits, a trend which ultimately sets the dollar up for a catastrophic and inevitable collapse.

When will that day come? I don’t pretend to have a crystal ball, and nobody knows for sure. I do know however, that I want to accumulate as many hard assets as possible before that day comes.

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Happy stacking everyone. Until next time, Smart Silver Stacker out.