Gold and silver are not having a great year, but one long-term chart is giving precious-metals bulls a very different reason to remain optimistic. Market analyst Tim Hack believes gold and si
Gold and silver are not having a great year, but one long-term chart is giving precious-metals bulls a very different reason to remain optimistic.
Market analyst Tim Hack believes gold and silver mining stocks have already broken a multi-year resistance level relative to the metals themselves.
He argues that the current pullback is a retest of that breakout and could eventually lead to a much larger move across gold, silver and mining shares.
His most aggressive forecast calls for silver to rise 10x-20x over the coming years, with some miners potentially gaining 30x-100x.
Those targets are clearly speculative.
The chart behind the thesis, however, is worth examining.
Hack’s chart tracks the PHLX Gold/Silver Sector Index relative to the gold price.
The XAU index is a capitalization-weighted basket of companies involved in gold and silver mining.
When the XAU/gold ratio rises, mining stocks are outperforming bullion.
Gold and silver miners have already proven that they’ve breached resistance relative to the metals. What will follow is the strongest bullrun in silver, gold and miners in the history of mankind.
— Tim Hack (@realTimHack) November 3, 2026https://t.co/ahupcBphze
For more than a decade, that ratio has remained trapped below a long-term descending resistance line.
Hack’s chart shows the ratio now pressing through that structure around the 0.08 area after several years of higher lows.
His interpretation is that miners have already completed the technical breakout and are now retesting the former resistance area.
If that reading is correct, miners could begin outperforming the underlying metals much more aggressively.
The orange circle on Hack’s chart points to another major turning point around 2016.
That comparison is significant because mining stocks massively outperformed gold during that period.
Gold finished 2016 up roughly 9%, while the PHLX Gold/Silver Index gained around 17%. Silver performed even better, rising more than 80%.
Looking at the strongest portion of the move makes the difference even clearer.
During the first half of 2016, gold rose roughly 30%, while the GDX gold miners ETF gained more than 150%.
That leverage is one reason mining stocks can perform so aggressively when gold prices rise.
A higher gold price can increase a miner’s profit margin much faster than the metal itself rises, assuming production costs remain relatively stable.
But that leverage also works in reverse when metals fall.
Read also: Here’s the Real Reason Gold Price Is Crashing Despite War and Inflation
Precious metals are not behaving particularly bullishly today.
Gold is trading around $3,900 per ounce and is down more than 1%, while silver has dropped roughly 3%-4% toward $49.
A rebound in oil prices has revived inflation concerns, increasing expectations that the Federal Reserve could keep monetary policy tighter. Reuters also reported that traders now see a roughly 76% probability of another Fed hike in December.
That gives Hack’s breakout an immediate test.
If miners continue outperforming gold even during weakness in the metals themselves, the relative-strength argument becomes more interesting.
If the XAU/gold ratio falls back below the broken trend line and stays there, the breakout could instead prove false.
That is where the thesis becomes much harder to support.
Mining stocks have produced enormous rallies before, especially smaller companies and juniors, but a 30x-100x move across “most good miners” would require extraordinary conditions.
Even during the explosive 2016 rally, broad mining benchmarks rose by multiples of gold’s return, not dozens of times in absolute value.
So Hack’s extreme price targets should be treated as his bullish scenario rather than a likely outcome.
The more useful signal is simpler.
After years of underperformance, miners may finally be attempting to break their long-term downtrend relative to gold.
If that breakout holds, the mining sector could once again provide substantially more upside than the metals themselves.
And history shows that when that relationship changes, the move can become very aggressive.
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The post Gold and Silver Could Be Setting Up for Their Biggest Rally Yet! appeared first on CaptainAltcoin.
