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Silver Price Forecast – Silver Markets Pull Back Toward Support

Christopher Lewis
·2-min read

Silver markets broke down below the $18 level during the trading session on Friday, reaching towards the $17.50 level. There is a significant amount of support underneath, therefore I think that it extends all the way down to the $17 level. Ultimately, I am looking for an opportunity to start buying silver, but I do not have the set up quite yet. Quite frankly, the way that money is being printed by central banks around the world, metals, and hard assets in general should do quite well over the longer term. Yes, there is no real signs of inflation yet, but one would think that it is only a matter of time.

SILVER Video 08.06.20

Beyond that, if the economy does take off to the upside and the jobs number on Friday supposedly reflect this, there is going to be more demand for silver anyway from an industrial point of view. In other words, silver should do quite well over the longer term. The biggest problem with silver market of course is that there is a lot of volatility and unfortunately leverage in the market when it comes to futures, so you need to pick your instruments to trade silver very carefully.

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If you are outside the United States, then you have the ability to trade the CFD market. That is something that allows you to set your position size accordingly. However, physical silver also works if you are more of a longer-term investor. I do believe that we will get a little bit of a bounce underneath and will let you know what to start buying again. In other words, even though the silver market is likely to continue to go higher longer-term, the “safety trade” part of the precious metals got hit.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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