AXMIN Inc (TSXV: AXM)
AXMIN Inc. (TSXV:AXM) is a Canadian-based exploration and development company with a strong focus on central and West Africa.
Since the beginning of 2024, silver prices have increased by almost 42%, with a 7.4% rise in October alone. However, both fundamental and technical analyses suggest that this upward trend in silver prices will not stop here. In 2020, silver prices surged by 48%. Will this year’s gains surpass those of 2020? Only time will tell, but the current trend favors the bulls.
The silver bull market in 2020 was mainly driven by supply chain issues and record inflation caused by the pandemic. Gold prices rose by 25% that year, but silver saw an even larger increase. Historically, silver tends to lag behind gold, but its price has greater upward potential once the trend starts. However, in the following years, silver spot prices settled into a narrow trading range.
In an earlier bull market, silver hit an all-time high of $50 per ounce in April 2011, surging 1000% from its previous lows. The catalyst for this rally was two rounds of quantitative easing by the Federal Reserve.
Extending the time horizon further, silver prices have formed a “cup and handle” pattern spanning nearly half a century. This suggests that while silver may experience a significant rise after consolidating in 2024, this could be just the starting point for a larger, historic surge. Technically, when the price breaks above the neckline of the handle, it signals a breakout, indicating significant price increases over the next few years.
How high can silver prices go? Some experts predict that the price of silver could even reach an astonishing three-digit figure.
Lynette Zang, CEO of Zang Enterprises, stated in an interview that central banks worldwide have signaled readiness for hyperinflation, making it only a matter of time before gold and silver prices continue to rise. According to her predictions, gold could exceed $3,000 by the end of the year, and silver could reach $50. She also noted that bank failures in the U.S. are not isolated events, and the debt wall is a global issue.
Meanwhile, the gold-to-silver ratio is currently testing the critical level of 75. Typically, when the ratio falls below this level, it often leads to accelerated increases in spot silver prices. The gold-to-silver ratio indicates how many ounces of silver are needed to buy one ounce of gold. For instance, if it takes 75 ounces of silver to purchase one ounce of gold, the ratio is 75.
