Silver’s Set to Surge—Here Are the 3 Conditions It Needs to Break Out
By Frank Balm, Dedollarize News
I know a lot of folks are getting frustrated with silver these days. It’s been stuck in neutral for five months, and patience is running thin. But I’ve got some good news: silver’s moment is coming, just like we saw with gold recently. We’re on the verge of a breakout, but for silver to take off and hit $50 or beyond, three key conditions need to line up. Once they do, hang on tight—this rally could be fast and furious.
1. Silver Must Close Above $32.50—And Stay There
This one’s simple: silver needs to break through the $32.50 resistance level and hold that ground with strong trading volume. This barrier has been giving silver fits since May—every time it tries to push past, it pulls back again. We saw that in late September and early October, and each time it fell just short.
But here’s the thing—every attempt brings us closer to the big one. Once we get a decisive close above $32.50, it’ll spark a wave of buying that could drive silver all the way to $50 in short order. That $50 mark isn’t just a number—it’s the same psychological peak silver hit during the 1980 and 2011 rallies, so investors will be watching it closely.
2. Silver in Euros Needs to Break €30
Why watch silver priced in euros? Because it strips out the impact of U.S. dollar fluctuations, giving us a clearer picture of silver’s real strength. The €30 mark is a key resistance level that’s been in place since May.
When silver breaks above €30, it’ll help confirm the move we see in U.S. dollars, reducing the chance of any false breakout. Silver likes to respect round numbers—€26, €27, €28—so I’d keep an eye on those too for signs that momentum is building. Once silver cracks that barrier in both currencies, we’re off to the races.
3. Synthetic Silver Index Must Break Key Levels
This last condition is a bit more technical, but stick with me—it’s important. I follow a tool called the Synthetic Silver Price Index, which is the average of gold and copper prices (with copper adjusted to avoid skewing the data). Why copper? Because silver tends to follow both gold and copper, though it often gets overlooked compared to those two.
For silver’s breakout to be real, the Synthetic Silver Index needs to break above its resistance zone between 2,560 and 2,640. When that happens, it’ll be a strong signal that silver’s next run is for real—not just a false alarm.
Why Silver’s $50 Target Is Just the Beginning
If you’ve been following silver, you know it’s already up 50% this year—but don’t let that fool you. There’s still a lot of gas in the tank. Historically, silver has been undervalued compared to gold. The gold-to-silver ratio shows us that if the ratio reverts to its long-term average of 52.8, silver would naturally rise to $50.36—even if gold prices stay where they are.
But it gets better. If you adjust silver’s price for inflation, it’s way behind where it should be. In 1980, silver hit $143.54(inflation-adjusted), and in 2011 it reached $68.04. Today, it’s sitting at just $31.60—there’s clearly room for silver to run.
The Money Supply Factor: Why Silver's Undervalued
Another way to look at silver’s potential is by comparing it to the U.S. M2 money supply—basically, the amount of money floating around in the economy. Since the mid-2010s, silver has lagged behind money supply growth, which tells us it’s overdue for a catch-up rally.
When silver’s price lags behind the growth in money supply, it usually means the metal is undervalued and ready for a bull run. With everything else we’re seeing, this could be the perfect storm for silver to make a serious move.
Silver’s Building Momentum—Don’t Miss the Launch
So, here’s where we stand: silver is gearing up for a breakout, and when it happens, it could happen fast. Breaking $32.50 in U.S. dollars and €30 in euros, along with a signal from the Synthetic Silver Index, will confirm that silver’s ready to rocket to $50 and beyond.
I know it’s been frustrating, but if you’ve been waiting for silver to show some life, your patience is about to pay off. Remember, silver isn’t just another metal—it’s a hard asset that holds value when paper currencies don’t. With everything happening in the world right now, having silver in your portfolio just makes sense.
If you need more tips on protecting your wealth, check out my Seven Steps to Protect Yourself from Bank Failure guide here. Or get the latest insights from Bill’s Innercircle NEWSROOM here.
The bottom line? Silver’s on the launch pad—it just needs a few more things to click. When they do, we could see the kind of breakout that only comes along once in a generation. Don’t miss it
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