Silver Trading at Top of its Uptrend Channel

While we all know silver is headed much higher long-term, what are its near-term prospects? While we have been calling for a target of $45-$50 by November, it is always important to consider where we've come in this run. Silver is up an amazing 117% since last August, and 165% since last February (just over 1 year). Examining a 10 year chart shows that silver is now hitting the top of its uptrend channel that began in 2006. Will this channel hold, or will silver break this channel and run up to the broader uptrend channel that begin in 2004, which would put silver in the $45-$50 range we've been calling for?

Chart courtesy Clive Maund

While technical analysis is useful and definitely induces caution after silver's massive gains over the past year, charts and analysis will cease to matter one day soon when the dollar gives up the ghost.
Our summary and recommendation:
1. Continue to hold physical gold and silver, and continue to accumulate on any dips.
2. Consider starting to lock-in profits on an outer portion of your silver share holdings.  Many of our silver stock holdings have made all-time highs in the past week.  For many of our silver mining holdings, it is time to start locking in profits on 10-15% of our positions.  If silver continues its ascent to $50, we can then lock in profits on a greater portion of our shares.