$50 Silver? Grummes Predicts Bull Run Amid Chaos
Silver (XAG/USD) is trading at $33.38, consolidating after hitting resistance at $33.70. This is the upper boundary of the rising channel...
Quick overview
- Silver (XAG/USD) is currently trading at $33.38, consolidating after facing resistance at $33.70, the upper boundary of a rising channel.
- Technical indicators remain positive, with silver above key levels at $32.88 and $33.05, suggesting an upward trend.
- Florian Grummes predicts silver could reach $40-$50 by early summer, citing strong technicals and a mispriced gold/silver ratio.
- The macro environment is becoming more favorable for silver, with potential tailwinds from policy shifts and rising inflation expectations.
Silver (XAG/USD) is trading at $33.38, consolidating after hitting resistance at $33.70. This is the upper boundary of the rising channel. Despite the rejection, the technicals are still positive: silver is above the mid-range trendline and its 50-period EMA at $32.88 – key levels that show the trend is up.
The MACD histogram is cooling off, but as long as silver is above $33.05, the path of least resistance is up. A confirmed break above $33.70 could trigger a move to $34.52 and potentially $35.23.
Trade Setup Summary:
Buy Entry 1: Bounce from $33.05
Buy Entry 2: Breakout above $33.70 with volume
Targets: $34.52 and $35.23
Stop Loss: Below $32.12
Grummes: Silver Could Hit $50 by Summer
Florian Grummes, managing director at Midas Touch Consulting, sees silver as one of the most undervalued assets in the market. In a recent interview, he said silver’s 3% move was more than noise – it’s a signal. “Today was the first day silver showed signs of life on its own. That’s very important and I think it can continue dramatically over the next few weeks,” he said.
Grummes expects silver to reach $40-$50 by early summer, driven by strong technicals and a highly skewed gold/silver ratio. “In nature it’s 10 to 1. In production it’s 7 to 1. Yet the market trades above 100 to 1 – that’s a joke,” he added, pointing out silver is fundamentally mispriced.
He also noted the lack of retail euphoria: “I haven’t seen lines of people at gold dealers. That tells me this isn’t a blow-off top. We’re just getting started.”
Macro Drivers: Policy Shifts & Inflation Hedges
Silver’s case is also supported by the macro environment. With Trump softening on China and hinting at tariff rollbacks, risk is coming back and industrial metals are lifting. Treasury Secretary Scott Bessent said tariffs may have to come down to facilitate negotiations, which is a potential tailwind for silver’s industrial demand. And central bank gold buying, rising inflation expectations and challenges to the dollar’s dominance—especially China’s push for gold-backed yuan contracts—are making silver a strategic hedge.
Grummes is still bullish on the long-term and even thinks silver could overshoot to $90 or $100 in a momentum play.
Conclusion:
The technicals are still positive and the macro is getting more supportive. With Grummes calling for $50 silver soon, watch $33.70 for the breakout trigger. The trend is up—confirmation is key.
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