I've been watching silver closely over the past six months. With the global economy weakening and traders indicating a tendency to remain defensive here, the backdrop is looking encouraging for a rally in precious metals.
Gold is looking strong here as well, but I think silver is the better play. The gold-to-silver ratio has been trending lower for years and the value aspect of silver right now, I believe, gives it more upside potential in 2020.
Silver prices are also developing a very clear pattern of rallying sharply, consolidating for a brief period and then rallying again. We've seen that play out five times in a little over a year and I think we're in the process of seeing that pattern again right now.
My short-term price target on silver is $20/ounce, a gain of 10-15% from here, with the potential for a move to $25 longer-term.
Check out the video above for a breakdown in what I'm seeing in silver right now.
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