Silver and Gold Price Explode - Charts Signal Massive Breakout

Craig Hemke (00:00)
Greetings from Sprott Money at SprottMoney.com. my goodness. We've reached December of 2025, another year ready to be put to bed and we'll begin to look ahead to 2026, but not without finishing up the month of December. And as we get it going, it's time for your precious metals projections. I'm your host, Craig Hemke and joining us as usual is my old friend, Chris Vermeulen of the technicaltraders.com. Chris.

Happy holiday.

Chris Vermeulen (00:30)
⁓ Same to you, happy holidays, Greg, always a pleasure.

Craig Hemke (00:33)
my gosh, how are we? It's like summertime still. How are we all the way in December?

Chris Vermeulen (00:37)
I know,

I swear I was in shorts and t-shirts like a few weeks ago and here we were skiing on the weekend already. It's crazy. ⁓

Craig Hemke (00:43)
What's the saying

about the day's drag and the years fly something like that? Yeah Well, here we are. Okay. So ⁓ hey, that means it's a holiday season always great deals on sound money at Sprott money So go to Sprott money.com or give them a call at 888-861-0775 add the gift of sound money To your holiday shopping list never too early

Chris Vermeulen (00:48)
yeah, yeah, jeez.

Craig Hemke (01:11)
to teach kids, grandkids, friends, relatives. I why just get a necktie or a scarf when you can get a silver round and teach somebody about the difference between sound money and fiat currency? Anyway, SprottMoney.com for all your gift needs. Oh, and one more heads up before we get started. This is the last month of the year, which means it will be time for not only a monthly wrap up, but an annual wrap up. Hey, Chris, guess who?

might be stopping by next week. No, not Santa. He does have a big gray beard though and a little bit of a belly that shakes when he laughs. ⁓ But everybody's favorite retiree ⁓ and I are scheduled to record next week. So please subscribe or like whatever channel you're watching this stuff so that once America's or everyone's favorite retiree and I are done recording, you'll be quick to see it because I'm sure you'll want to watch.

Chris Vermeulen (01:44)
⁓

yeah ⁓ nice

Craig Hemke (02:10)
All right, so Chris, that's a lengthy intro. Let's start with silver this month. We've had this tremendous run up this year, just like gold has, even greater percentage. Broke through the old all-time highs. Previously, when it got up to 48, 49, it came collapsing right back down. Silver got to 48 on October the 2nd and has continued higher. Got to 54, pulled back.

Chris Vermeulen (02:17)
All right.

Craig Hemke (02:38)
Got to 54 again, pulled back, and now blasted through to what, 58, 59. What do you make in the short term, at least, for silver?

Chris Vermeulen (02:48)
Yeah, well, Silver's got a beautiful chart. ⁓ As you and I know, we're in a time where I think Silver precious metals across the board are set to continue to push higher and potentially go really ballistic and take off over the next couple of months. But when we look at the short-term chart of Silver, we've had a lot of different stuff, different patterns on different timeframes unfold, but we just had this great big pause. We had a big rally up to this level, which

Depending on where you wanna draw this level, either way, it's a beautiful big pause, a consolidation, meaning that this is just a little bit of a temporary pause before it goes higher. And now we've seen it break out, we've seen it run higher, and now it's forming another bull flag pattern right here. We've had an explosive move up over the past two weeks. It's been trading sideways. This looks like a high momentum move, meaning we could see silver based on this chart pattern.

run to about 68, $69 an ounce. It could happen literally within two or three trading sessions based on this chart pattern. So we could see silver and metals have a big pop this week. So it's pretty exciting when we look at the chart and using technicals, we use Fibonacci extension, it gives us a good idea of just the short term, this short term rally and this pullback that we've seen. It tells us where the next two upside targets are for silver. So $64 is the next upside target.

based on where price is right now, it's about a 10 % move. And if we do have this 100 % measured move, that's gonna be around a 17, 18 % move to the upside. So this could be a really nice explosive move in silver if it can get its momentum going over the next couple of trading sessions. And when we look at, I don't have it for silver, but silver and gold are pretty much the same. When we look at the seasonality chart, as you like to always pull up here, Craig, we're coming into that time of year, we're like.

pretty much right now, after the first week and a half of the year or of December, we tend to see precious metals wanna go higher. And usually gold and silver move up together. And so we're coming into the sweet side, not only for precious metals, but even for equities to have a final push higher. ⁓ so silver is really exciting, because percentage-wise, it's got a very big move primed and ready. And as we can see from this last portion of this move, in more or less,

It was five trading sessions. kind of made a very significant move percentage wise. If we look at that move, it was about 24%. So I think there's some excitement just around the corner to end the year on a very strong, precious metal note.

Craig Hemke (05:18)
If I ask selfishly, but probably for a lot of other people out there, the silver need to pull back to that, what is that red line? That purple line, I guess is what it is. Is that like the 20 day moving average? Is it pulled back to there? Does it go back to the old, you know, what was resistance become support up in or around 55? If you're looking for a dip to buy, where would you look?

Chris Vermeulen (05:41)
Yeah, I mean, yeah, if we use Fibonacci retracement, we could say, well, based based on that move, the sweet spot will be between about 5250 up to about 5540. So right around this breakout zone that you just kind of you just mentioned right where this this pink reddish line is. So that would that would be a healthy pullback range. The chart pattern right now is actually primed and ready to pop and really take off. This is a very high momentum move. So.

If it does pull back, I think it's an opportunity. If you're not long at right now, think, you know, I think it's going to, I do think it's going to move up here. So either way, all the timeframes for silver and precious metals are bullish on all timeframes to the upside. So at this point is in a, it's in a very strong rally mode. You either, you know, you need to own it.

Craig Hemke (06:18)
Well.

you mentioned the seasonality, also as we record this on Monday the eighth, we've got the December FOMC meeting that is pending and all sorts of potentially bullish news coming down the road. So let's keep an eye on that one. It'll be fun to see where we are by the time we record another one of these videos in early January. Let's shift to gold though, Chris. ⁓ Gold ran higher with silver through September into October. It has since put.

I'm reluctant to call it a lower high just because what followed that was a higher low. So, but it's not broken out past its October highs like silver has. So what are you watching here? That pennant?

Chris Vermeulen (07:05)
Yeah, yeah.

Yeah,

think gold's, I think right now we're seeing, the precious metal space has really come to life. Everybody's kind of on high alert for it. So naturally we're going to see money move into the more speculative side of things, which is why think we've seen silver move first. People have moved into it quicker. It's a smaller market. They want to make higher returns. So silver has already popped and broken out. Gold is a little bit more conservative.

It still has a very strong chart pattern. This is a huge run up. It's had a big pause. It is pointing to about $5,200 per ounce when all this unfolds. And right now, if we zoom in on the shorter term chart, you know, we've got a very strong bull flag pattern, just very similar to silver. It's had a nice run up. It's had a pullback and it's just showing that in the short term, while silver shows about a 17 % move, gold shows roughly about a six or so percent move. And that's

I mean, that's typical silver percentage wise moves a lot more when it has a run. So I think gold is a little bit slower moving. I find it's more accurate. I find I can win more trades with gold and see there's always a trade off, right? Either you can knock some out of the park, have some huge gains, but you might not win many trades because they're a little more unpredictable like silver or you make lower returns, but you win more trades and it's less volatile. there's very two, two different characteristics between these opportunities.

and gold's doing what it does. It's being a little more conservative. It's lagging a little bit at this point. I think money's looking for higher returns than gold, which is silver. And I think miners and platinum and platinum, think there's money starting to figure out trying to spread out, I think in the precious metal space right now.

Craig Hemke (08:48)
All right. As we record, like I said, it's 8th of December and we've got about three weeks to go in the year. I don't know, with the holidays, maybe I get 14, 15 trading days. So even let's just assume we go sideways for the rest of the year and take a look at the annual charts, you know, where you can really see the longer term trends. You know, we go from the hourly charts, the daily charts, the weekly charts, the monthly charts, the quarterly charts. But how about an annual chart, my friend? What do you got?

Chris Vermeulen (09:03)
Mmm.

Yeah, I don't know if you and I have looked at these yet, but obviously we've got a pretty explosive bar. We've never seen a bar. I mean, it'd be interesting to go back here. If we look at these green bars, percentage wise, there was a 149 % bar. Let's see what some of these other bars are. There was a 30%. So this bar that we have right now, I mean, if you think about it, it still has a lot of potential to be back similar.

Craig Hemke (09:19)
Goodness.

Chris Vermeulen (09:45)
to the late 70s, we've seen bigger spikes than what we have right now, but when you look at it from this chart standpoint, it's a pretty big spike. Let's take a look at the log chart. If we kind of look at the log, it gives us a bit more of a balanced view. But I mean, we're just in this big rally mode in precious metals. There's no doubt the trend is up. I don't think anybody's really trying to pick a top in gold because that's just a bad opportunity or a bad play. You really just have to...

ride this trend up until it's proven wrong and until it reverses on multiple timeframes from potentially the 30 minute to the daily to the weekly or or the monthly chart. And then you'll be like, okay, maybe the trend is done. So when we look at it from an annual standpoint, though, that gold has had a beautiful move. If we were to look at it from a Fibonacci standpoint based on this rally up here, this pullback through here, we have blown past the 100 % measured move based

based on this past yearly pattern. If we go back even further, this is a much bigger one, let's just clear the chart up. We can go based on this low back over here from 2000, we can go to the peak in 2011, the low back here, you can see here, we're still above all of the targets. And this is why I've been talking about it for a while is we're in this kind of, I hate to say bubble phase or blow off phase, but we've hit the measured move targets for gold. And so now we're in no man's land, you just have to,

ride the trend, we're in the perfect environment for precious metals to go higher. And now you kind of drop down to these shorter term charts, which, you know, if we go and we go back to the daily chart, this is where we can get an idea of where the next critical targets are, because the yearly chart, we've already blown past all that. So we could grab the low from this last bull flag pattern, the high that we've had, and this recent low, and this will give us an idea of

where this next run is going to go, which is about $51.75 for gold. we see what that is, it's about a 22 % move. So there's a lot of potential still for gold ⁓ to the upside over the next couple of months. could potentially see money rotate into this space. think one of the big things that would be interesting to see play out is if the stock market eventually stalls out and rolls over.

And if it does, is the money that's coming out of equities, is that gonna pile into precious metals and send them sharply higher? I think it will. It's just a matter of waiting for the stock market to actually roll over and start to sell off. And for that new money to be raised to get put to work somewhere. And typically money, when there's cash on hand, people look to whatever's performing best to move into. And I think precious metals are definitely that space.

Craig Hemke (12:33)
Really, that's remarkable. You came up that 5,200 number. As we've discussed, that weekly chart ever since price broke out in March of 2024 just continues this pattern of 20 % rallies and then a three or two, three, four month consolidation, then another 20 % rally. I mean, you could see it right there. ⁓

Chris Vermeulen (12:53)
Yeah, I mean,

it's never ending. It's just a constant phase of 20 % rallies over and over again. Yeah. So I mean, and the 5,200 comes out at another 20 % gain, right? It's just, it's how the market is. It's stair steps its way up and then eventually takes the elevator down. But we're, there's no doubt like this, we're in a strong bullish chart power. And the question is, does this weekly chart go on for another

Craig Hemke (13:00)
Is that remarkable?

There you go.

Chris Vermeulen (13:20)
10 or 12 bars, which is going to be two or three months, or does it just pop and break out and pick up speed and hit that next upward target? We don't know, but the trend is up. So you just have to let it mature. It could take three weeks. It could take three months. It's not about so much timing the markets, about knowing what trajectory and trend it's on, and then just taking advantage of it. Let the chart do the work. Don't try to rush anything or else you'll get into a bunch of premature trades or get out of trades.

Craig Hemke (13:33)
Yeah.

Chris Vermeulen (13:47)
too early because the market if it doesn't shake you out, it will wait you out. And that's what it did with this last one over here. I mean, it took forever for for this bull flag pattern to play out. People started to give up on it and then boom, it took off and people are like, like, you know, people are just too impatient.

Craig Hemke (14:04)
Yep. people might be listening to us going, well, it can't be that easy. And it's not. However, you know, when we stalled out at 3,100 or whatever it was back in January and into February, well, that set the next target. And then, you know, by April we're at 3,500. Then we stalled out again. The next target was projected to be about 4,200 and away we went. You just, like you said, you had to be patient. If the pattern continues.

Chris Vermeulen (14:27)
I know, well, you and I have

been doing these reports for the last couple of years and we just draw these targets each time and we just keep hitting them time after time after time. It's not rocket science, but it is hard to do it because you get hooked into news and emotions and you worry about giving back too much gain if it starts to pull back a bit and then you worry about missing out on a move. The emotions in the news really take over. you could...

Craig Hemke (14:34)
Yeah.

Yep.

Chris Vermeulen (14:54)
pull that away from the market, get that out of your head and just follow price patterns, which is what I do, which is what I try to help other people do. It really makes things a lot easier. But the problem is no matter how much I try and keep people on the straight and narrow, like just follow the price charts. This is what it's saying. This is what it's pointing to. They always have all this, they're inundated with news and other people's opinions and extreme chart analysis that will scare the hell out of people and make them make decisions.

So it's really tough. It's tough to put the blinders on and just be like, just let the next 20 % move play out. And if it puts in a topping pattern and starts to break down, we'll be able to identify it and we get out. And you're never going to get out at the top. You're always going to have to give back a good chunk of some profits before you know a new downtrend, like the uptrend has ended and then a new downtrend has started. So if you can always realize that you're probably going to give back potentially five, 10, 20 % of the massive

big multi-year trend like this, that's just part of the game. But you have to let it prove that the trend is over before you get out.

Craig Hemke (15:58)
Right. ⁓ Chris, let's just do one more. And if you wouldn't mind, let's look at some kind of proxy for the mining sector, whether it's a GDX or one of the Sprott ETFs, whichever one you want to follow, you can pick. ⁓ I find it intriguing. And again, it's about patience and waiting to see what happens next. We had this run up blast to all new all time highs in the GDX back in October.

Chris Vermeulen (16:12)
All right.

Craig Hemke (16:27)
It then pulled back all the way back down to those old all-time highs around 68. But it's yet to take off. now, like I said, there's only three weeks left in the quarter. Gold's average price is 4,100. Silver's average price is north of 50. Dramatic increases over the third quarter, but yet the shares are still kind of, yeah, it's like mining share investors don't know what to do. ⁓ So what do you make of this technically ⁓ on that chart?

Chris Vermeulen (16:56)
I mean, it's doing similar to gold. mean, we can look at it here. Like you get a rally up and then it pauses for a while and then you get a rally up and then it pauses for a while. So this is, you have to, think you just have to look at this. Miners are a little more volatile. They'll shake you up. They'll make some higher highs, some lower lows and you won't know what to do. And that's exactly kind of what they've been doing, but there's a pause here.

And really all we are right now is the same with gold and gold. They're just in a pausing phase, right? I'm expecting we're going to see us eventually break to the upside. If we zoom into the daily chart, we get a much cleaner look of where we are. It's very similar to the price of gold here. We've got this push up. We got a nice bull flag and you know, it's pointing to higher pricing here at any point. There's a couple of different bull flag patterns through here. There was this nice one here and it pulled back.

Craig Hemke (17:36)
Yeah.

Chris Vermeulen (17:48)
And you know, using simple Fibonacci, mean, I always use this tool, but to me, it's the most accurate tool there is to identify invisible resistance levels and targets. That's what I love about it is because most people don't use it. And when things are hitting all time highs or, or moving higher, they don't know where to put a target really, but Fibonacci gives us these perfect targets. based on this previous run and this pullback and we carry it over, you can see we came.

right up to the 100 % measured move. And so now we're pulling back. So now we have another one unfolding right here. And this will tell us where the next upside target here for miners are, which is around the 90-90 level. So once they find some traction, I think we could see about a 13 % move. What's interesting here is silver has the best opportunity, better than miners.

So the silver is kind of the shining star at this point. It's outperforming, but there's no doubt the chart pattern on gold miners, this, kind of rounding formation. You could argue now this is kind of a little cup and a handle formation with built in bull flags. This is the, know, if we were to do a cup and handle formation, it's typically the depth of the cup is one other way to measure where it could go when it breaks out. So if I was to just throw that on here, let's just pull the chart down.

It brings us over the $100 mark, right? So it'll be very interesting to see where this unfolds. The first target I gave you, the $68 is based on the daily chart of, that was for silver. Sorry, this is for gold miners, but gold miners have got some pretty good potential to the upside, about 30, 31 % if this pattern was to unfold going forward.

Craig Hemke (19:14)
Yeah.

Chris, it's been a really amazing year. It is so unusual for gold to follow what was a big year last year with an even bigger year the next year. ⁓ You've done a great job of helping us every single month. Here it's brought money to kind of navigate things, to look at the charts and keep us grounded. I very much look forward to doing it again next year. In the meantime though, as people try to, I guess, take an assessment of how they did personally, and they're looking for some help.

Chris Vermeulen (19:42)
Yeah.

Craig Hemke (20:01)
going forward, how do they contact you and what is your technical traders, what's that all about?

Chris Vermeulen (20:06)
Yeah, well, the best way to get some insight of what I do is just go to YouTube, type in the technical traders, you'll see my channel there. I share what the markets are doing every day. Not every day, but I post daily updates of what's going on with all the different asset classes from long-term charts right down to 30 minute charts. So you get a feel for that. I manage my own portfolio. I share my exact trades with subscribers. So we all trade the markets together and very education. You're to learn how to read the charts and understand what's going on. And I help.

try to control people's emotions. Cause as we mentioned before, trading isn't hard, but controlling your emotions to put real proper trades on is extremely difficult. And so I help manage people's emotions because I can weed out the noise. I can weed out the extreme sentiment that usually makes people make bad decisions. chase things too high because they have fear of missing out. They get shaken out of trades too quick because they're worried about giving back gains. Once you understand the general philosophy of managing risk and

The reality is that you're going to give back some gains and you're never going to get in at the bottom. It's it's identifying trends and capturing that sweet spot. That's, that's what I do. So I educate and we all just trade the exact same trades together and follow the markets using ETFs.

Craig Hemke (21:21)
Well, I know ⁓ my old friend, Eric, the happy Santa Claus of the North, everybody's favorite retiree. know he's a big fan. ⁓ and I couldn't, can't imagine a better endorsement than that. thank you so much. It's always so much fun to visit with you. Thank you for all you've done this year. I look forward to a great 2026.

Chris Vermeulen (21:39)
Sounds great, Craig. Yep, sounds good.

Craig Hemke (21:41)
And from all of us at Sprott Money, again, check out SprottMoney.com for all your holiday gift needs, but also like or subscribe on this channel because ⁓ once Eric and I get a chance to record next week, you're not going to want to miss it. Anyway, thank you, Chris. Thank you everybody for watching and we'll have more content for you before we drop the ball on New Year's Eve and look forward to a great 2026.