Innehållsförteckning / Table of Contents
In terms of commodities, silver has lived in gold’s shadow and, more often than not, moved in correlation with gold prices.
Silver is starting to live a ” life of its own ” as the global economy is transitioning to renewable energy and carbon-free power.
According to Statista, silver production in 2020 amounted to 784.4 million ounces while demand was 896.1 million ounces. There is a growing demand for silver, especially when considering the green narrative.
Silver straddles two worlds of value. Both an industrial metal and fungible commodity, silver gains serious traction in a digital world in need of affordable risk-off assets
*Red lines are downtrend. The heavy red line is the long-term trendline.
*Green lines are uptrend. The heavy green line is a long-term trendline.
*Blue lines are short term support & resistance lines
(Picture 1 – Trendlines / Support & Resistance)
(Picture 2. – Moving Averages & RSI)
We can expect a mid-term bearish market when the silver price tests and breaks under 21.44 USD per ounce. However, when the silver price corrects and spikes up to 24.55 USD area, we must look for a further breakout above 24.55 USD resistance line/downtrend line and 250MA. When silver breaks above from all those three indicators, it is expected to see a strong bullish silver market.
Disclaimer: This article is for informational purposes only and is not intended as an investment analysis or recommendation to sell or buy commodities. Tavex is not responsible for any decisions made based on this information. Investing is associated with opportunities and risks, and the market value of commodities can both increase and decrease. Past or future yields on the commodities and financial ratios shown above do not represent a promise or an indication of future earnings.