Silver News

Silver Enjoys Rare Day of Optimism as Markets Rebalance After Last Week’s Sell-Off

Silver investors can for a change look at the charts with a hint of optimism with the metal trading in green territory above $21 an ounce. In fact, the bulk of equities and commodities are pointing upwards at the start of a new week of trading with the recent sell-offs deemed overly aggressive with some rebalancing of levels required. Live Silver Price - $/oz Silver’s slump has mainly been a result of central banks, in particular the Federal Reserve, tightening their monetary policies in recent months by winding in stimulus packages and increasing interest rates. Yet today’s brief pause for reflection on the true state of the markets is a reminder that silver has been meted some particularly harsh treatment by traders. Later this week the heads of the European Central Bank, the Bank of England and the Fed will all be speaking so silver holders will be fearful of any indication that even more aggressive policies may be required to curb runaway inflation. So while silver’s tentative gains today are long overdue given the medium-term outlook for the metal that still points to ever-increasing industrial demand, the heavy cloud of further interest rate hikes continues to overshadow the metal’s prospects. 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 greenwashing 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

27/06/2022

Silver Struggles to Hold on to $21 as Likelihood of More Rate Hikes Diminishes Appeal

Silver is hovering around $21 an ounce having dipped under the threshold earlier in Friday’s trading session. The latest downward price pressure for silver came from Federal Reserve Chair’s Jerome Powell’s comments this week in which he made clear that the central bank is determined to bring runaway inflation back under control and will keep on raising interest rates in order to do so. Another 75 basis point move seems near-certain in July with further hikes expected over the coming months.  Live Silver Price - $/oz It was the prospect of central banks needing to adopt more hawkish monetary policies that sparked silver’s initial price plunge back in mid-April. From that point on the precious metal has struggled to find any support with the metal now trading close to its lowest in almost two years. Rising interest rates make non-yield-bearing assets such as physical silver less attractive with silver’s fall from grace exacerbated by concerns over inflation turning into a global recession, diminishing the metal’s industrial appeal. It has been a sorry ride for silver holders over the last two months and the pain may not be over yet.  For those brave enough to look over the short-term horizon however, the fundamental case still remains strong in the medium-term with physical demand for the metal likely to reach a fresh record high this year. 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 greenwashing 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

24/06/2022

Silver Slips Close to $21 as Recession Fears Allied to Interest Rate Hikes Dwindle its Appeal

Silver has slipped closer to $21 an ounce amid another down day for stock markets as fears mount that runaway inflation will tip over into a global recession as central banks face the unenviable task of curbing rising prices without choking economic activity. The metal has fallen out of favour among investors with every negative driver leapt on to prompt often exacerbated declines for silver. Take today for example: risk-off sentiment typically sees haven assets such as gold and silver benefit, yet the broader concern that interest rates will need to keep on rising has denuded these potential gains. However, while gold is down about 0.4%, silver has been hit with a 1.8% plunge currently. Live Silver Price - $/oz While this reflects the reduced trading volumes of silver versus gold that do leave silver more prone to sharper and more volatile moves, it also demonstrates the willingness of investors to kick the boot in against the metal. The prospect, and indeed the reality, of rising interest rates are undoubtedly detrimental for the appeal of the non-yield bearing asset of silver while economic slowdown will also reduce the metal’s industrial appeal. However, given the metal derives a lot of its industrial demand from two of the key sectors of our time: batteries for electric vehicles and photovoltaics for solar energy; the negative case for silver looks to be overplayed and in the medium-term the metal has plenty of potential to return to the $27 an ounce level seen as recently as 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 greenwashing 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

22/06/2022

Silver Struggles to Make Gains as Investors Switch Off to Any of Metal’s Appealing Factors

Silver is struggling to make any headway with the price trading around $21.50 an ounce. After the painful run of losses from mid-April to mid-May that saw the price fall by more than $5, the brief attempt to recover some of those losses was stopped in its tracks by the Federal Reserve’s 75 basis points move last week. Silver can draw on multiple factors to drive its price but unfortunately, none of those are looking particularly compelling in the short term. Its perceived role of being a hedge against inflation is failing against aggressive tightening monetary policies from central banks to try and curb rising prices. Live Silver Price - $/oz Similarly, investors look to be choosing other haven assets to protect against sharp plunges on equity markets. While silver’s industrial appeal is dwindling against the context of a potential global recession looming. Put all that together and it explains why silver is trading close to two-year lows. However, as soon as a shift in sentiment emerges, there is a strong fundamental case for silver to climb in the medium-term given its use in the key technologies and industries of our time, notably solar energy and in batteries for electric cars. 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 greenwashing 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

20/06/2022

Silver Shrugs Off Largest Fed Hike in Almost 30 Years to Trade Just Below $22

The Fed tried to calm inflation by raising interest rates from 1% to 1.75%, with a massive 0.75% hike. The hawkish policies of Jerome Powell and other central banks will increase the chances of triggering a recession. But this, according to central banks, is still the “least bad” option versus untamed inflation. This new scenario is of course having an impact on commodities too. Indeed, growing expectations of slower economic growth are denting optimism for raw materials demand. This explains the decline in prices seen for a large majority of commodities in the last few days. Indeed, on a weekly basis, copper is posting a decline of 4%, while WTI and Brent – the two main oil benchmarks  – are down by almost 3% with agricultural commodities also falling. Live Silver Price - $/oz In the precious metals space, after an initial decline, gold and silver performed better than other commodities following the Fed’s increasingly hawkish choices. Indeed, on a weekly basis gold is down by 1%, while silver is posting a tiny loss. Theoretically, both should be suffering from the strength of the greenback with silver more at risk from the new monetary policies, as about half of its demand comes from the industrial sector, unlike gold, which is mostly used in jewellery and as an investment. Therefore, the recent rebound in the price of silver is an interesting signal. From a technical perspective, the price has recovered to $21.80. A clear break above the $22 mark and $22.20 would open space for further recoveries. Vice versa, in case of new declines, there are solid supports placed at $21.20, $20.90, and $20.40 an ounce. Carlo Alberto De Casa is an external Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. Carlo provides regular commentary for UK notable outlets including the BBC, Telegraph, The Independent, Bloomberg, FX Empire and Reuters. With a credential background in Economic Finance and International Exchange (MA), his critical analysis on gold and silver’s markets performance is frequently quoted by leading publications, week-on-week. 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.

Carlo Alberto De Casa
Carlo Alberto De Casa

17/06/2022

Silver Makes Tentative Gains for Now With Investors Fearful of Fed’s Latest Rate Hike

Silver is making tentative gains on a day dominated by the looming interest rate decision by the Federal Reserve. The precious metal has had a torrid couple of months, slumping from trading near $26 an ounce in mid-April to struggling around $21 an ounce two months later. The catalyst for this plunge was the prospect of central banks adopting more hawkish monetary policies with a series of interest rate hikes planned over the course of this year. Live Silver Price - $/oz A couple of months into that marked change of approach, the Federal Reserve is expected to issue its third consecutive interest rate hike today with the question not whether it will raise rates but by how much? Fed Chair Jerome Powell had previously stated that 50 basis points moves were sufficient but a late change of opinion by markets earlier in the week saw an increasing number of traders predicting a 75 basis point hike today. Silver investors will be hoping that Powell keeps on message with the Fed keeping within its 50 basis point moves, as this is what has already been priced in. A surprise to the upside would inflict further pain on silver with recent evidence suggesting that the metal will be meted out extra punishment compared with its golden peer given the same market driver. 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 greenwashing 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

15/06/2022