THE UNTHINKABLE Is About To Happen To SILVER! – Michael Oliver Silver Price Prediction 2025

Summary

In this video, Michael Oliver discusses the distinct momentum patterns of gold and silver, focusing on silver's potential for a breakout. While gold has experienced steady price acceleration, silver has been caught in a range, with momentum suggesting a major shift is imminent. Oliver highlights the significance of the gold-to-silver ratio, which is currently historically low, indicating that silver may be undervalued. With the strong correlation between gold and silver, Oliver predicts a substantial rally for silver, potentially reaching $40 to $50 per ounce by 2025, driven by both gold's performance and rising industrial demand.

Takeaways

• 😀 Gold has experienced a steady rise over the past 12 to 18 months, recently accelerating into a vertical phase with significant price breaks above key resistance levels.
• 😀 Silver, in contrast, has been stuck in a range for the past year, oscillating between $32 and $35, with its price action being more unpredictable and erratic compared to gold.
• 😀 Analyst Michael Oliver believes silver is on the cusp of a major breakout if it breaks through the $34 to $35 range, potentially leading to explosive price growth.
• 😀 The gold-to-silver ratio, currently at a historically low 1%, suggests that silver may be significantly undervalued compared to gold, with a potential surge in price if the ratio rises.
• 😀 The 200% increase in the global money supply over the past 15 years has diminished the value of fiat currencies, driving investors toward precious metals like gold as a hedge against inflation.
• 😀 The persistent weakening of the US dollar due to inflation and the expansion of the money supply is a key factor in gold's rising demand and price.
• 😀 Michael Oliver highlights that global monetary degradation, not just in the US but worldwide, has been a key driver of gold's long-term upward movement.
• 😀 Despite the global focus on China’s gold purchases, Michael Oliver suggests that broader trends of monetary degradation are more crucial to gold's price movements than any single country's actions.
• 😀 The silver-to-gold price ratio is a strong indicator of silver's potential to outperform gold. A rise above 1.1% would signal the start of a significant silver price surge.
• 😀 In past bull markets, silver has historically outperformed gold, such as during the 2008 and 2011 rallies when silver surged by 400% compared to gold, indicating a similar potential for the future.
• 😀 Analysts expect silver to reach $40 per ounce by mid-2025, driven by gold's performance, with some forecasts predicting $50 by September 2025, contingent on industrial demand and investment flows.

Q & A

What has been the overall trend in gold prices over the past 12 to 18 months?

Gold has experienced a remarkable upward trajectory, surpassing expectations and consistently outperforming key technical indicators like the 200-day moving average. The rise was relatively steady with incremental gains, although there were periodic pullbacks. In the past few months, gold has entered a phase of accelerated price action.

How does silver's price action differ from gold's in the past year?

While gold has seen steady upward momentum, silver's price action has been more erratic and unpredictable. Silver spiked to nearly $35 in October 2024 but struggled to maintain consistent upward movement, fluctuating between $32 and $33. Despite these fluctuations, silver's corrective phase may be nearing its end, and a breakout could trigger a significant rally.

What is the significance of the gold-to-silver ratio?

The gold-to-silver ratio provides insight into the relative value of both metals. Currently, silver is trading at about 1% of the value of gold, a historically low level that suggests silver may be undervalued. If the ratio rises to 1.1% or higher, it could signal that silver is on the verge of a major price surge, as seen in past market cycles.

Why is silver considered to have potential for a breakout?

Silver has built a pattern based on momentum that suggests it has not yet fully begun its upward movement. Despite oscillating around the $33 level, silver’s long-term momentum has been correcting over the past year, and if it breaks through the $34 to $35 range with sustained momentum, it could trigger a substantial rally similar to past explosive movements.

What does Michael Oliver suggest about silver's price potential based on historical trends?

Oliver suggests that when the gold-to-silver ratio falls to such low levels (like around 1%), silver has historically experienced significant price rallies. For instance, during the COVID selloff, silver surged dramatically while gold's gains were more modest. A similar surge could occur if the ratio rises above 1.1% or higher.

What is the relationship between gold and silver price movements during major rallies?

Typically, during gold rallies, silver has historically outperformed, especially in the later stages. For example, during the 2008 and 2011 bull markets, silver outperformed gold by up to 400%. While silver often lags behind gold initially, it has shown a tendency to deliver superior returns during gold’s bull runs.

What factors have contributed to gold's consistent upward movement in recent years?

Gold's upward movement is largely due to the global expansion of the money supply, particularly by central banks in the US, the Eurozone, and China. This surge in the money supply has diminished the value of fiat currencies, especially the US dollar, driving investors toward gold as a reliable store of value.

How has the weakening of the US dollar influenced gold's price?

As the US dollar weakens due to rising inflation and a declining value, particularly from the expansion of the US money supply, investors have sought alternatives like gold. Gold is seen as a finite resource with intrinsic value, offering a safer option against the volatility and decline of government-issued currencies.

What does Michael Oliver think about the role of China's gold buying in the market?

While there has been significant attention on China’s gold buying, Oliver argues that gold moves based on broader global trends in monetary degradation, not just Chinese demand. The expansion of the global money supply, not just US monetary policies, is the primary factor driving gold’s rise.

What warning does Michael Oliver give regarding the performance of Treasury bonds?

Oliver points out that the performance of Treasury bonds (T-bonds) has been concerning, as they have not acted as a safe haven during times of stock market volatility. Despite attempts for bonds to rise, they have struggled to recover, raising concerns about the broader economic and fiscal issues facing the US, particularly government debt.