Oliver Sees Silver Price Soar Above $500 Target

Michael Oliver, founder of Momentum Structural Analysis, has raised his silver price target. He previously estimated that silver could run to $300-$500, but now believes it may not stop there.

Oliver appeared on Commodity Culture and stated that the recent surge in December and January was only the beginning of a market scream. He pointed out that the current price action is not just a $70 brick wall, but rather a series of lows and highs that have been broken.

The August 5 buy date for silver, gold, GDX, and SIL marked a turning point in the market, according to Oliver. The third rally after the winter drop has been different from the previous two, which failed to gain traction.

Short-term momentum suggests that the dip is wrapping up, with a reclaim of $70 or $71 potentially causing price chart analysts to take notice. Relative value also supports silver's breakout, as it sits at 1.5% of the gold price, below its 10-year compressed cheapness versus gold.

Oliver's book is 'heavily biased towards silver and silver miners', and he attributes the lag in silver's price to potential manipulation. He warns that those who have held back or contributed to the restraint will be 'killed' when reality sets in.