Roadmap to $100 silver

Since the high in 2011, silver has gone through a major correction.  Silver is roughly 60% off the 2011 high.  This may sound extreme but for silver this decline is just a normal move in its bull market.  The first big decline was from $8.40 to $5.40 back in 2004 — that represented a 35% plunge.  The next major pullback took place in 2008, when silver collapsed from $21 to $8.40 — this, like the recent decline, represented a 60% plunge in price.

The main thing for investors to understand is that these pullbacks represented excellent buying opportunities.  Those who bought the first decline in 2004 saw the price rise a massive 288%, and those who bought the decline in 2008 saw the price advance a staggering 495%.

Assuming this bull market is not over, the next move in silver should total somewhere between 288% and 495%.  If we split it down the middle, the next gain from the current level would be roughly 390%.  If $18.10 was in fact the bottom for silver, that would translate into an astonishing price of $88.69!  The $100 price target below represents an advance of 450%.  A remarkable move in the price of silver to $100 would look like this (see chart below):

Again, this type of move would not be extreme because it reveals how violent advances and declines in the silver market have been up to now.  If you also consider that silver is now at the most oversold level in history (see bottom indicator in the chart below), the rally from these depressed levels should be stunning.  Another interesting formation to watch is the possible flag pattern (highlighted below):

Silver will be advancing from a very solid base, and a breakout to the upside from this pattern would easily target $90.