• After lagging behind gold, silver is showing signs of a powerful bull market, breaking above key resistance levels (32-33 USD and €30). A decisive close above 34-35 USD or €32 could confirm the start of a significant rally, mirroring gold's breakout in 2024.

• Silver remains undervalued compared to gold, with the gold-to-silver ratio at 88, far above its historical average of 53. A reversion to historical averages could push silver prices significantly higher, potentially reaching 56.32 or even 158.87 per ounce.

• A persistent structural deficit in silver supply has existed for five years, with demand outstripping supply by 182 million ounces in 2024. Declining mine production and surging industrial demand, particularly in solar panel manufacturing, exacerbate this imbalance.

• Bullion banks hold a massive net short position in COMEX silver futures, equivalent to 211 million ounces. A breakout could trigger short-covering and a potential short squeeze, amplified by the high ratio of paper silver (378:1) to physical silver, driving prices sharply higher.

• Rising inflation, economic uncertainty and geopolitical tensions are driving investors toward safe-haven assets. Silver's dual role as both a monetary and industrial metal positions it for significant upside, making it a compelling investment opportunity in the current climate.

After years of playing second fiddle to gold, silver is finally showing signs of breaking out. With gold soaring to record highs in 2024, silver has lagged behind — until now. Recent price action suggests that silver may be on the verge of a powerful bull market, one that could rival or even surpass gold's impressive rally. But what's driving this potential breakout, and why does it matter for investors today?

The technical case for silver's breakout

Silver's recent price movement has been nothing short of intriguing. After months of choppy trading, the metal has decisively broken above the 32 to 33 resistance zone—a level that has acted as a stubborn ceiling for much of the past year. According to Jesse Colombo of BullionStar, this breakout is a critical first step. "The next crucial confirmation will be a strong, high-volume close above the 34 to 35 resistance zone," he explains. "Once silver clears both barriers, the path should be wide open for the powerful bull market I've anticipated since April 2024."

This technical setup mirrors gold's breakout in March 2024, when it finally surged past the 2,000 to 2,100 resistance zone that had capped its price for years. If history is any guide, silver could follow a similar trajectory, potentially soaring to new highs.