Silver News

Silver Price News: Silver Set for Moment to Shine as Price Nears 7-Month High

Silver has enjoyed a positive start to December and is now comfortably above $22 an ounce at levels last seen in early May. Silver has been primed for a rally ever since it hit its year low in September with a strong fundamental case desperate to be heard. The fact silver has struggled thus far to make more significant gains illustrates how strongly the interest rate hikes by the Federal Reserve, and other central banks around the world, have weighed on the precious metal’s price. Now as investors look past another likely hike by the Fed later this month and ahead to when the US central bank may stop raising rates, the US dollar has weakened a fraction and given silver, and all those commodities priced in the greenback, a boost. Today’s US jobs data will be a significant data point for silver but in a different way to its precious metal peer gold as silver’s industrial appeal will mean it will want to see strong employment figures and no sign of an imminent US recession. Assuming this proves the case then silver looks well set to make up further lost ground since its plunge from the $26 an ounce level reached in March. Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience inwriting about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News. As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewableenergy and the challenges of avoiding greenwash while investing sustainably. This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.

Rupert Rowling
Rupert Rowling

02/12/2022

Gold & Silver December Outlook – 2022

Gold Outlook Gold enters the final month of the year trying to hold onto the significant gains the precious metal achieved in November. The price climbed by $100 an ounce on the prospect of the Federal Reserve being less aggressive with its upcoming interest rate decisions. Upcoming December rate move As has been the case for the bulk of the year, all eyes will be on the US central bank with gold investors' festive cheer depending on the outcome of the Fed’s interest rate decision on December 14th. The hope is that after a series of 75 basis point increases, December’s meeting will bring a slightly softer 50 basis point hike and be the first step on the road to further increases petering out in the early part of 2023. By the time the Fed’s rate decision comes in the middle of the month, the bank officials will have a few more pieces of the economic jigsaw puzzle with the latest jobs and unemployment data at the start of the month, following the US inflation figure for November the day before the FOMC meeting. Positive numbers that show a resilient jobs market and inflation on a downward trajectory will give the Fed more breathing space to reduce the aggression of their hikes while any negative surprises are likely to spook markets that remain highly jittery. Gold Price Performance Gold has been hostage to the actions and words of the Fed and its officials with the precious metal’s price struggling under the weight of the US central bank’s series of significant rate hikes over the second half of 2022. Gold’s lack of yield has made it vulnerable during this period of rising interest rates and offset any potential gains the precious metal may otherwise have benefited from, given the highly inflationary environment as well as the ongoing war in Ukraine. While the macroeconomic picture has kept a cap on the gold price, the metal hasn’t been without support, with any significant dips in the price prompting fresh purchasing waves from Asian buyers in particular, with no sign of this trend disappearing any time soon. Crypto - a fresh driver In a year in which the Fed has been the dominant factor, November did bring a fresh driver into the mix with the collapse of crypto giant FTX. The huge losses endured by those companies and individuals exposed to the bankruptcy of the cryptocurrency firm prompted significant flows into gold, with investors seeking a haven in gold that has proven a store of value throughout the bursting of numerous stock market bubbles. Where does all this leave gold? The gains in the early part of November point to an investor mindset keen to support gold but still lacking the ideal macroeconomic conditions. With another hike expected by the Fed in December, it is hard to see gold making significant gains, but equally, the price looks to have built up a strong floor. As such, a stabilisation above $1,700 an ounce looks the likeliest outcome with gold priming itself for a stronger 2023 as and when the Fed’s much-anticipated pivot finally materialises. Of course, Kinesis has its own gold product, gold-backed KAU, which converts the age-old asset into a digital currency fit for modern times. With gold’s fortunes looking more favourable, KAU offers holders the chance to benefit from any rise in the price of the underlying asset, while also generating a yield from transactions carried out with the currency. Silver Outlook After a promising start to November, which saw the silver price climb from $19 an ounce to above $22 an ounce, the second half of the month disappointed those investors hoping to see silver continue on its upward trend with the price instead consolidating around $21 an ounce. Why is silver so undervalued? From a fundamental perspective, it remains truly remarkable that silver continues to languish at such low levels. The latest figures from Metals Focus point to the metal enjoying a record year of demand with every sector, from industry, investment and jewellery, through to coins and bars, all performing incredibly well. Global demand for silver is set to increase by 16% to 1.2 billion ounces, according to Metals Focus, leading to the largest supply deficit in decades with a shortfall of 194 million ounces, a scenario that is likely to continue well into 2023. Entering the energy transition A thirst for silver for photovoltaics as well as in batteries has made the metal far better placed than its precious peers (gold, platinum and palladium) to benefit from the global drive towards net zero and the electrification of transport and power. As well as a buoyant industrial outlook, Indian demand has surged on the back of weaker rupee prices for silver with buyers willing to pay a premium to have their metal flown in from the vaults in Europe rather than shipped. Yet despite all these bullish factors from the demand side, silver enters the final month of the year still way off its high for the year in March. This underlines how prone to the broader macroeconomic conditions silver is, rather than purely the metal’s fundamental supply and demand balance. With the Federal Reserve expected to implement another interest rate hike in the middle of December, albeit at a slightly smaller increase than in previous months, silver has found itself less attractive than other asset classes that provide a yield. One silver product that remains attractive is Kinesis’ Silver KAG, a digital currency backed by one ounce of physical silver. Not only does the currency track the price of its underlying precious metal, but holders also benefit from a monthly yield generated through the transactional velocity of silver spenders. Furthermore, continued lockdowns in China may dent economic growth in one of the key industrial hubs, while Europe looks set for a recession in 2023 as the continent battles with persistently high inflation. Yet despite these negative factors, the fact remains that silver is a metal in record demand and one whose fortunes look ideally placed for the energy transition that will dominate the agenda for years to come. So after the late November period of consolidation, silver once again looks hugely undervalued and ripe for buying in December. Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience inwriting about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News. As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewableenergy and the challenges of avoiding greenwash while investing sustainably. This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.

Rupert Rowling
Rupert Rowling

01/12/2022

Silver Price News – Silver jumped by 10% in November

The silver price jumped by around 10% during November having reached a bottom below $18 in September and is now traded at $21.3-21.4, consolidating recent gains. The performance of silver in November saw the grey metal halving the decline posted in the first ten months of 2022.  The overall economic scenario has changed in the last few weeks, with a slowdown of the greenback and investors forecasting a less hawkish Fed in the next few meetings. We should also point out that silver in November finally outperformed gold. It almost seems that investors suddenly realised the precious metal was undervalued, particularly considering the strength of demand and growth expectations for the metal in 2023.  From a technical point of view, there are solid support areas between $20.6 and $20.8. In this range are the bottoms reached in May and June, but also the relative peak of August. The silver price is now dancing just above this, consolidating after the recent rallies and seems to be just waiting for catalysts which could further enable its positive momentum. Of course, any dovish indication coming from this evening’s speech by Fed chairman, Jerome Powell, could be one such catalyst. Vice versa, any hawkish rhetoric could curb the current recovery. Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience inwriting about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News. As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewableenergy and the challenges of avoiding greenwash while investing sustainably. This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.

Rupert Rowling
Rupert Rowling

30/11/2022

Silver Price News: Silver Stable Above $21 Awaiting Fresh Catalyst

Silver continues to trade above $21 an ounce with the metal going through a consolidatory phase awaiting a fresh catalyst to drive the price. Silver is caught between a strong fundamental outlook that suggests its price should be far higher, with another record year of demand in prospect, set against a macroeconomic picture in which interest rates are likely to continue rising for a while yet. As such, Federal Reserve Chair Jerome Powell’s comments later this week will be highly instructive for silver investors, who will be analysing his speech to determine where the interest rate curve of the US central bank is headed. After some optimism about an early pivot earlier in November, Powell could well deliver a reality check about the need to maintain interest rate hikes well into 2023. However, if Powell’s comments prove more dovish then silver is primed for another rally, having built up sufficient support above $21 an ounce to climb again and recover more of the ground lost in the metal’s multi-month plunge from April through to September. Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience inwriting about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News. As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewableenergy and the challenges of avoiding greenwash while investing sustainably. This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.

Rupert Rowling
Rupert Rowling

28/11/2022

Silver Price News: Silver Hovers Above $21 After Week of Consolidation

Silver is hovering just above $21 an ounce after a quieter trading week, which included the US Thanksgiving holiday, that has seen less dramatic moves and enabled traders and investors to take stock. Silver’s outlook remains characterised by two contrasting factors: the strong fundamental case for the metal and the impact of interest rate hikes by central banks across the world. For much of the year, silver’s fundamental case didn’t get a look in and instead all the focus was on the detrimental impact of ever-increasing interest rates. However, for the last couple of months, the metal’s strong demand from the solar, electric vehicle and tech industries has gained attention. From a fundamental perspective, silver’s current price remains far too low with a year of record demand anticipated, with recent holdings data also showing silver being pulled out of vaults for coin and bar production. Yet any efforts to make sustained gains back to the $26 an ounce level seen in March are thwarted by the Federal Reserve’s need to keep on raising its benchmark interest rates, which dwindles the appeal of a non-yield-bearing asset like silver. With December near certain to see another hike by the Fed, albeit potentially slightly smaller than recent months, this is putting a cap on silver’s price. Yet the moment there is any hint of a dovish pivot by the Fed, expect silver to make significant gains. Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience in writing about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News.  As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewableenergy and the challenges of avoiding greenwash while investing sustainably. This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.

Rupert Rowling
Rupert Rowling

25/11/2022

Silver Price News: Silver Perks Up on Prospect of Positive Spin on Fed Minutes

Silver has perked back up above $21 an ounce ahead of the release of the November minutes of the Federal Open Market Committee as a slight weakening of the US dollar allied to a likely positive market reaction to the publication of these minutes boosted support for the precious metal. This slight uptick is a reminder of the strong fundamental case that currently holds for silver. The metal is a key component within the solar energy, 5G and electric vehicle industries, whilst investment demand has also been on the rise. Therefore, in contrast to the situation earlier in the year where every macroeconomic release prompted a fresh decline for silver, optimistic investors are now seeking the positives for silver in every new data point. Today’s Fed minutes will give greater clarity on where the US central bank sees its interest rate curve going over the coming months. Since this meeting convened at the start of November, a slew of Fed officials have commented about the need to keep interest rate hikes going for a while yet with talk of the rate needing to climb to 5%, so the publication of the minutes will provide a clearer indication on how united the committee was on the prospect of another large hike in December, as well as in early 2023. Whichever way the wording lands, the sense is that investors will look for the positive spin to place on it for silver and try to push the price up further to recover more of the ground lost since April. Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience inwriting about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News. As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewableenergy and the challenges of avoiding greenwash while investing sustainably. This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.

Rupert Rowling
Rupert Rowling

23/11/2022