Silver reclaimed $61 USD on Wednesday. It closed the week at $63, and printed as high as $65 intraday.
If you've been reading these articles, that level should sound familiar. A few weeks ago I wrote about David Bird calling the bottom in silver and the confluence of signals he was watching. Since then, David went a step further and put two specific confirmation levels in writing. Silver needed to reclaim $61, and gold needed to reclaim $4,200. Both had to break for the bottom call to be fully validated.
That's now happened. Both levels cleared on the same day. And in my view, this is a much bigger deal than most retail investors realise
Why the $61 Level was so important
$61 was not a random number pulled off a chart. It was the confluence point where the descending trendline from the January high, the top of the June and July consolidation range, and a heavy volume node all met in the same place. Break through it with conviction, and the technical picture flips. Fail at it, and the correction continues.
David Bird laid this out clearly in a post on 4 August.
David explained that when he called the bottom in silver a few weeks ago, almost everyone was calling for much lower prices. He noted it was exactly the same setup as gold trading around $1,600 USD, when the consensus was calling for even lower prices right before it went on to make new all time highs. Then he laid out his confirmation levels: silver needed to break above $61, and gold needed to reclaim $4,200.
When I see a certified financial technician operating under an AFS licence putting specific levels in writing, and price then goes and delivers exactly what he called, it's the kind of thing worth paying attention to.
Confirmation Is Now In
David responded to his own post on 5 August, the day silver broke through $61.
I love that response. It's understated, it's self-deprecating, and it's also the third public precious metals call in a row that David has been proven right on. He called the gold bottom around $1,600 USD back in 2022. He called this silver bottom last month. And now he's called the specific breakout confirmation level.
What Comes Next Above $61
Now that $61 has been reclaimed, the question becomes what happens from here.
The next technical levels analysts across the board are watching are $63.80, $68, and $72. Silver has already tagged the first of those this week. If the breakout holds and momentum carries, the path opens up toward the $68 to $72 zone, which is the last real resistance cluster before triple digit silver becomes a serious conversation again.
That's the technical picture. But the macro backdrop is what makes this move especially interesting to me. The US dollar remains under pressure. The Fed has softened its tone on inflation. M2 money supply is expanding at the fastest rate in years. Central banks continue accumulating gold at record pace, and industrial silver demand is still running well ahead of supply, with the Silver Institute forecasting a physical investment demand increase of around 20% this year to a three year high.
When you have a technical breakout confirmed by a respected analyst, combined with a macro backdrop that's actively pushing capital out of fiat and into hard assets, that's the kind of setup I sit up straight for.
This Is Bigger Than Just Silver
Silver isn't moving alone. Gold cleared $4,200 on the same day silver reclaimed $61, and has since pushed on to $4,342. Both of David's confirmation levels delivered inside the same trading session, which is exactly the kind of coordinated breakout you want to see when you're trying to work out whether the entire precious metals complex has turned.
Another respected technician, Craig Tapping, put out a detailed post on 6 August breaking down the gold move. It's worth reading in full for anyone serious about understanding what's happening across the sector.
How I'm Positioning
Nothing has changed in my personal positioning. I said in the previous article that we've been increasing our positions in silver and platinum, and I said even if I was wrong about the low being in, I'd just buy more.
The breakout above $61 doesn't change the strategy, but it does reinforce the thesis. I still expect $300 USD an ounce silver within the next three years. Whether you enter at $61, $63, or $65 doesn't matter much when the destination is multiples higher. What matters is being in the market rather than sitting on the sidelines waiting for the "perfect" entry that never comes.
If you were waiting for confirmation before adding to your position, you now have it from two of the most credible technicians in the country. What you do with that is up to you.
What a time to be alive.
Sam from Liberty Bullion
