After a bullish run in 2025, silver is poised to extend its gains, having flashed a 45-year chart pattern that signals a potential breakout, which could push the metal toward the long-watched $50 mark.

The commodity is currently trading at $39.69 per ounce, consolidating after a sharp rally that has reignited bullish interest. Year-to-date, the precious metal has rallied about 35%.

The price outlook is anchored in a cup-and-handle formation stretching back to the late 1970s, a long-term structure often viewed as one of the strongest bullish continuation patterns.

Notably, silver first surged toward $50 in 1980 during the Hunt brothers’ squeeze, only to collapse in the years that followed. A second attempt came in 2011, with prices once again failing just below $50 before entering a prolonged downtrend.

Now, more than four decades later, silver appears to be completing the “handle” portion of the formation. The current rally has carried the metal beyond the $30 and $35 resistance zone, levels that capped advances for much of the past decade. 

Implication of silver’s current pattern formation

What makes this setup unique is its scale. Notably, cup-and-handle patterns are typically measured in months or years, but silver’s span is 45 years, highlighting the potential significance of a confirmed breakout. 

Therefore, a move above $50 would place silver in a new territory, potentially unlocking higher price discovery in line with surging industrial demand from solar, electric vehicles, and electronics.

For now, silver’s trajectory hinges on whether buyers can sustain pressure above the mid-$30s and push toward $45, the next visible resistance. A failure to hold current levels could trigger a retest of the breakout zone, delaying a bullish resolution.

The long-term pattern, however, looks bullish considering that silver’s multi-decade consolidation may be ending, and a break above $50 would represent more than just another rally; it would confirm one of the most significant technical catalysts in the metal’s modern history.

Featured image via Shutterstock