Silver News

Silver Continues to Fall in Short-Term But Fundamental Outlook Provides Hope

Silver finds itself under pressure again as investors continue to see the Federal Reserve’s expected series of interest rate hikes as the key macroeconomic driver. In this environment, silver keeps being punished even though the US central bank’s comments on its short-term economic policy were announced last week. As such, silver has quickly gone from trying to hold on to the key recent level of $25 an ounce just a week ago, the metal now finds itself only a little above $23 an ounce at its lowest level since mid-February. Live Silver Price Chart - $/oz Yet silver’s decline could present a buying opportunity, particularly in the wake of Russia cutting off gas supplies to Poland and Bulgaria, as this is likely to increase the pace at which European countries seek to move away from their reliance on fossil fuels, particularly those sourced from Russia. While some alternatives, notably nuclear, will take many years and many billions in expenditure to start producing, solar and wind can start generating in a much shorter time frame. Silver is used in the production of both photovoltaic cells for solar energy and is also used to lengthen the lifespan of wind turbines. This industrial component of silver offers a way out from its current short-term decline and investors willing to look through the strong headwind presented by an environment of rising interest rates may see silver offering good value in the medium-term. 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

27/04/2022

Silver Continues to Fall as Investors Punish Its Lack of Yield in Time of Rising Interest Rates

Silver is struggling to find a footing currently as after failing to hold on to $25 an ounce last week it now finds itself below $24 an ounce at its lowest level since February. The prospect of a series of interest rate hikes by the Federal Reserve has placed non-yield bearing assets such as silver under pressure with this significant bearish factor outweighing a series of potentially bullish factors for the precious metal. The Fed is expected to raise interest rates in each of the next three months which has strengthened the dollar and pulled down assets, such as silver, that are priced in the US currency. Live Silver Price Chart - $/oz Silver seems to have been meted out considerable punishment by traders currently for its lack of yield in an environment where interest rates are set to rise as from a fundamental perspective the case for silver still looks strong. Industrial demand for the metal is set to rise this year, particularly from the renewable energy sector where silver is a crucial element in photovoltaic cells used in solar panels, while with inflation proving a lasting concern, silver gains attraction as an asset that can hold its value over time. Yet for the short-term at least, the behemoths of the Fed’s actions and the reduced growth outlook for China, the world’s biggest economy, as it continues to be plagued by lockdowns, is outweighing silver’s medium-term attractions. As such, these recent losses could offer bullish investors a chance to bolster silver positions at lower prices. 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

25/04/2022

Silver Fails to Rally Back Above $25 in Face of Series of US Interest Rate Hikes

Silver has remained below $25 an ounce in the face of hawkish comments from Federal Reserve Chair Jerome Powell about the pace and strength of the US central bank’s implementation of measures to try and bring inflation under control. With interest rate rises of 50 basis points now almost certain in May and June with another similar hike increasingly likely in July too, non-yield bearing assets such as silver look less attractive in the medium-term. Live Silver Price Chart - $/oz For much of this year, silver has found considerable underlying support each time it has dipped below $25 an ounce but on this occasion, the strength of the market reaction to Powell’s comments has diminished silver’s appeal. But it isn't all doom and gloom for silver as the reason the Fed is having to be so aggressive with its policy is the concern of rising inflation, and silver is typically considered a good hedge against inflation as an asset that has held its value over time. Furthermore, in contrast to gold, silver has a strong industrial demand underpinning it and the outlook for this year looks bullish in this regard and could see the price push upward once again soon. 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

22/04/2022

Silver Slips Below $25 But Positive Outlook for Metal Could See Price Rise Again

Silver has slipped below $25 an ounce on a day when traders are seeing the positives from a resilient earnings season against a backdrop of the ongoing conflict in Ukraine and an escalating inflationary environment. It will be interesting to see silver’s reaction having fallen below this significant threshold as on most of the recent times it has dropped below $25, a wave of buying swept in to bump it back above this level. And while today may be seeing silver come under pressure, the wider outlook remains very bullish for the metal. Live Silver Price Chart - $/oz Sadly Russia’s aggression and destruction in Ukraine show no sign of ending anytime soon with the city of Mariupol now nearly entirely flattened in the face of fierce resistance by the Ukrainians still holding out. The risk of further escalation, including the use of chemical or nuclear weapons by Russia, seems a likelier short-term outcome rather than a peace agreement being struck, increasing the appeal of haven assets such as silver. Add in silver’s appeal as a hedge against inflation as well as the fundamental demand for the metal for its industrial application in solar energy and other technologies and it points to silver quickly rising again. 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

20/04/2022

Silver Remains Strong Above $25.5 Per Ounce

US data showed inflation has reached a multi-decade high and investors are betting on gold and silver as a way to protect themselves against the risk of further increases in the pace of inflation. In 2021 a large majority of central banks called inflation “transitory”. The situation dramatically changed in the last few months, especially after the beginning of the conflict between Russia and Ukraine. The recent inflation rally pushed the US CPI to 8.5% in March, and the price growth pace reached a historical record in Europe too, at 7.5%. Live Silver Price ($/oz) One of the main market drivers of this week is expected to be the ECB meeting, in the calendar for tomorrow. It will be interesting to see if the inflation rally will be enough to force Ms Lagarde to accept some of the requests of the North European hawkish policymakers, who are asking her to bend her dovish stance. In this scenario, gold and silver are gaining momentum. Indeed, the ETF holding of gold jumped close to an all-time record, but investors are also buying silver. The precious metal started the week breaking above the key level of $25 per ounce, before continuing its bullish move to jump to $25.6/25.7. As long as the price remains above $25, the technical scenario continues to be positive, with space for a further price increase. We should note, however, that silver has already gained almost 10% since the beginning of the year. Monitor the Silver Price with Kinesis' Live Charts Click Here Carlo Alberto De Casa is an external Market Analyst for Kinesis Money. He also writes as a technical analyst for the Italian newspaper La Stampa. Carlo Alberto provides regular commentary for UK outlets including the BBC, Telegraph, the Independent Bloomberg & Reuters. He is also a commentator for CNBC Italy. He worked for Bloomberg as their Equity Research Fundamental Analyst before joining brokerage ActivTrades in 2011 to specialize in currency markets and commodities. In 2014 he published a book on gold and the gold market, followed by a new updated edition in 2018. 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

13/04/2022

Silver Jumps Above the key Resistance at $25 per Ounce

Uncertainty remains dominant in both the geopolitical and macroeconomic scenarios. Indeed, the war between Russia and Ukraine does not seem to be close to an end, while inflation pressure is forcing central banks to act. Investors are now betting the Fed to raise rates by 0.5% in May, while this week the ECB could include some hawkish notes in its forward guidance. Despite central banks having started to reduce the dovish monetary policies of the last few years, the majority of commodities posted a strong Q1, including silver, which is up 6.5% YTD. Live Silver ($/oz) Price Also, the new week started positively for the grey metal. Indeed, the silver price has surpassed the key resistance level of $25 per ounce. It will be interesting if silver can hold above this threshold. Indeed, last week, the area between $25 and $25.10 has already managed to curb a silver rebound on a few occasions, confirming it to be a solid resistance. Therefore, a clear jump above the $25 threshold would represent a bullish signal for the precious metal. Due to its strong correlation with gold, we could note that the surpass of $1,950 by gold could surely help silver to remain above $25. In this scenario, the gold-silver ratio, which represents how many ounces of silver it would take to buy one ounce of gold, is steady in the region of 78.5. Monitor the Silver Price with Kinesis' Live Charts Click Here Carlo Alberto De Casa is an external Market Analyst for Kinesis Money. He also writes as a technical analyst for the Italian newspaper La Stampa. Carlo Alberto provides regular commentary for UK outlets including the BBC, Telegraph, the Independent Bloomberg & Reuters. He is also a commentator for CNBC Italy. He worked for Bloomberg as their Equity Research Fundamental Analyst before joining brokerage ActivTrades in 2011 to specialize in currency markets and commodities. In 2014 he published a book on gold and the gold market, followed by a new updated edition in 2018. 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

11/04/2022