Silver News

Silver Closes in on $22 as Investors Reconsider Value of Assets After Brutal Sell-Off

Silver is closing on $22 an ounce as asset classes readjust their levels after a series of sharp drops in recent weeks. While the sell-off saw global indices plunge, silver seemed to be meted out its own extra punishment by investors with the price slumping from close to $26 an ounce to below $21 an ounce in barely a month. Having been sold off so brutally, silver now has great potential to recover a considerable amount of territory during this readjustment phase. Live Silver Price - $/oz Today the weaker US dollar, which silver is priced in, is helping the metal gain. Going forward silver can continue to benefit from a fresh appraisal of the global economic outlook which could boost silver’s industrial appeal. While the gains for silver are likely to be capped by the prospect of the Federal Reserve administering interest rate hikes in both June and July, the fundamental outlook for silver still presents a strong enough case for the metal to gain back to levels seen in mid-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 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

23/05/2022

Silver Climbs Back Towards $22 After Brutal Month Left Metal Undervalued

Silver has finally stemmed its losses with the price pushing back up towards $22 an ounce. While this still represents a significant drop compared with where the metal was trading in mid-April, for silver investors this presents some light relief after a brutal run saw the price sink to its lowest since July 2020. The macroeconomic hasn’t broadly changed in recent days with buyers finally returning to silver more a reflection of how undervalued it had become. Live Silver Price - $/oz The Federal Reserve’s planned series of interest rate hikes will remain a significant headwind for silver, with its lack of yield making it less attractive compared to other interest-bearing asset classes. Concerns over global economic growth are also a limiting factor with silver’s more industrial outlook compared with gold. However, in these volatile trading conditions that have seen some dramatic daily moves on the world’s largest equity indices, a sudden surge in silver’s price shouldn’t be ruled out. With a smaller investment pool than gold, silver can experience bigger swings and if investors start to buy into silver’s fundamental appeal, which could see another record year of demand, then the price could quickly spring back up to the $25 an ounce level seen just a few weeks ago. 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

20/05/2022

Silver’s Slide May Finally Have Stopped as Price Climbs Back Above $21

After a painful month for silver that saw its price plunge from near $26 an ounce to below $21 an ounce, the metal is finally showing signs of having found its bottom with the price now climbing tentatively back above $21. There hasn’t been a substantive change to the trading environment with Federal Reserve Chair Jerome Powell reiterating that the US central bank will continue to raise interest rates in June and July.  Live Silver Price - $/oz This hawkish environment has seen silver punished consistently but it has now found a level where investors have the confidence to support the asset once again. While the fundamental case remains strong for silver, the likelihood of interest rate rises over the coming months on both sides of the Atlantic hasn’t allowed that case to be heard. For now, silver holders can breathe a sigh of relief that the losses may finally have paused but the road to recovery back to $25 still has lots of bumps ahead. 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

18/05/2022

Silver Sinks Below $21 as Metal is Punished By Growth Concerns, Prospect of Rising Rates

Silver’s slide looks set to continue this week with the metal now trading below $21 an ounce having ended last week touching levels last seen in July 2020. Silver has found itself caught up in the broader sell-off on equities and on gold, punished for being an industrial metal at a time where growth forecasts are being trimmed and hammered for its lack of yield at a time of rising interest rates. Live Silver Price - $/oz The turnaround in silver’s fortune has been pretty dramatic with the price falling from close to $26 an ounce in mid-April to below $21 an ounce barely a month later. On each occasion the price has fallen below a significant technical or psychological threshold, bullish investors will have hoped that the metal would find support to avert the slide. Yet for the short-term, silver is seemingly powerless to stem the bleeding of its price. Yet once markets finally pause for breath after some extremely volatile days that have seen huge losses across a number of different asset classes, silver will surely represent a strong buying opportunity with the fundamental case that was supportive in April still true today. 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 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

16/05/2022

Silver Investors Cling on to Hopes Price Has Found its Bottom After Punishing Month

Silver’s brief recovery earlier in the week proved fleeting with the price plunging again yesterday to below $21 an ounce to the lowest level since July 2020. So far in early Friday trading, silver is making tentative gains in line with small corrections seen on equity markets after a series of huge drops over the course of the week that has left the S&P 500 Index on the cusp of a bear market. Live Silver Price - $/oz As has been stated numerous times in this commentary, the fundamental case for silver remains strong with industrial demand likely to remain strong for the foreseeable future as countries seek to decarbonize their economies and increase solar energy output, which relies on silver for the photovoltaic cells. Yet this bullish demand outlook has been overwhelmed by macroeconomic concerns where sustained inflation has forced central banks to adopt hawkish policies as they try and prevent this from escalating into recession. Silver has found itself continually punished for about a month now but for a brave investor willing to look over the horizon, these low levels surely present a buying opportunity.  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 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

13/05/2022

Silver Finally Finds Respite as Price Rises From 2020 Lows Ahead of US Inflation Data

Silver is finally receiving some respite from traders after being punished by seemingly every macroeconomic and geopolitical indicator since the middle of May. Having sunk from comfortably above $25 an ounce to just above $21 an ounce in less than a month, the price has perked back up to $21.60 an ounce in early Wednesday trading. Today’s buying interest is a reflection of how undervalued silver has become, having sunk to levels not seen since July 2020. How far these initial gains can extend will likely be determined by the market’s reaction to the US inflation figure due out later today. Live Silver Price - $/oz Expectations are that inflation in April will come in slightly lower than March’s figure but still above 8%, a very high level historically and well above the Federal Reserve’s 2% target. In this inflationary environment, the Fed has been forced to implement a series of interest rate hikes and reduce its balance sheet, reducing the appeal of non-yield bearing assets like silver. Yet with the fundamental case for silver still strong, investors are starting to realise that silver still has an attractive investment case as a key material for the burgeoning solar energy sector, a potential hedge against inflation as well as a defensive asset to hold in case of any escalation of the war in Ukraine. In this context, a quick recovery back above $22 an ounce and onwards is highly possible. 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

11/05/2022