Silver News

Silver’s Good Run Continues as Traders Buy Undervalued Asset

Silver’s good recent run continues with the metal now above $19 an ounce even as both the European Central Bank and the Federal Reserve look set on a series of significant rate hikes in the coming months. The fact that silver has been able to make these recent gains - even though the macroeconomic picture remains very hawkish - suggests that the precious metal had been oversold and overly punished by the prospect of ever-rising interest rates with traders now buying silver with the asset seen to be considerably below its fair value. Silver’s recovery back above $19 an ounce will be of relief to investors, but the metal still remains considerably below where it was trading just a few months ago and the current levels still put it at the bottom end of its trading range of the last two years. Positive news out of Ukraine, where the home forces have pushed back against the invading Russians, has also lifted markets with silver gaining a slight boost given its industrial exposure. How long this recent tentative recovery can continue will largely depend on the actions of central banks in the coming weeks and months. With an aggressive policy now priced in, any relenting by central banks will give silver a boost. But assuming large rate increases are indeed implemented, then it is hard to see silver climbing significantly above $20 an ounce. 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

12/09/2022

Silver Enjoys Rare Strong Week as Traders Buy Undervalued Asset

Silver has enjoyed a strong week that could yet see it record a 5% gain as it edges up towards $19 an ounce. Historically, this remains a very low level for silver with the metal trading at $26 an ounce as recently as April but after a torrid few months and the false dawn of the price having reached its bottom in July, this week’s gains are being greeted warmly by silver investors. The fact these gains have come despite another central bank, in this instance the European Central Bank, implementing another large hike to its interest rate suggests that the hawkish environment in which there will be many more increases to interest rates over the coming months has been priced in. Silver has been punished severely by the aggressive stance of the Federal Reserve in particular, with its lack of yield seeing it fall out of favour at times of rising interest rates, so the fact it has still been able to rise this week despite expectation mounting that the Fed will implement another 75 basis point hike later this month suggests that investors see the metal as undervalued having been overly punished in recent weeks. While silver’s slight recovery is long overdue, the reality remains that the metal will struggle to make significant gains given the macroeconomic picture. A key first target will be how the price reacts when it reaches $20 an ounce as this was the level silver held for a period last month before plunging again. The price will need to first challenge and then hold on to this key threshold to demonstrate that the recent buying interest is driven by more than traders buying an undervalued asset and show that the metal is returning to favour. 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

09/09/2022

Silver Shows Signs of Bottoming Out as Traders Buy Undervalued Metal

Silver investors will be hoping that the recent tentative recovery that sees the metal once again trading above $18 an ounce is evidence that the price has well and truly hit its bottom after the false hope of July’s recovery. The metal remains under considerable pressure from central banks across the world intent on raising interest rates as they try to bring runaway inflation under control. Yet while it is hard to see silver making huge gains in such a hawkish environment, the price had fallen so far below its true value, given a buoyant fundamental demand outlook, that the metal represents a buying opportunity.  Its lack of yield may make it less attractive at times of rising interest rates while a US dollar trading near its record level presents a further headwind yet silver remains a highly important metal used in key sectors of the energy transition such as in photovoltaics for solar panels and in batteries for electric vehicles. From this perspective, it is hard to justify quite why silver has sunk so low and traders are taking advantage of its cheapness to increase their exposure with the aim of benefiting once these hawkish clouds clear. 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 basi

Rupert Rowling
Rupert Rowling

07/09/2022

Silver Near Two-Year Low Under Pressure From Rising Rates and Energy Crisis

Silver is back above $18 an ounce but remains near the lowest levels in more than two years after the bearish short-term pressures saw the metal start September by dropping into $17 territory. While silver is largely being driven by the same factor of gold, where a climate of rising interest rates across the world is making non-yield bearing assets like precious metals less attractive, silver is also coming under pressure from a deteriorating economic outlook, particularly in Europe, given the metal’s more industrial exposure than its golden peer. Russia has increased the stakes in its geopolitical standoff with Europe in the wake of its continued invasion of Ukraine by announcing late on Friday that the Nordstream pipeline, which accounts for the bulk of Europe’s gas flows, will not restart following recent maintenance. This weaponising of energy has placed European economies under further pressure at a time when they are already tackling runaway inflation with the continent now facing the prospect of having to ration energy supplies over the winter. Against these dual negative backdrops, it is hard to see where silver can get the boost it needs to get it back to the $20 an ounce range it had seemingly stabilised around just a few weeks ago. Yet while the short-term picture remains bearish, the fundamental long-term outlook looks far healthier so for an investor willing to endure some short-term pain, healthy rewards could still be on the horizon. 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

05/09/2022

Silver Slides Below $18 to Lowest in Two Years on Strong Dollar and Hawkish Central Banks

Silver’s slide below $18 an ounce to levels not seen in more than two years has dashed hopes that the bottom recorded in July would prove to be the low for the year. A strong dollar, which is trading near record highs, allied by a Federal Reserve intent on raising interest rates multiple times over the coming months has forced silver down and drained away optimism that built up in August as the metal consistently held above $20 an ounce. Today’s payroll figures out of the US are likely to reaffirm that the world’s largest economy remains healthy and that high inflation isn’t yet having a material impact on employment nor manufacturing output. While this is a positive for silver, given its industrial use in sectors including solar energy and electric vehicles, for now this is overwhelmed by the actions central banks across the world are taking to bring double digit inflation back under control. It is worth noting that silver futures have now sunk significantly below where the metal can be bought in person, with the physical market at a premium to the paper one. This underlines both how far silver has fallen as well as demonstrating that the fundamental supply and demand outlook is not being matched by the price action on the financial markets, presenting a buying opportunity for a brave investor. 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

02/09/2022

Silver’s Optimism Fades as Price Sinks Towards 2-Year Lows on Reminder of Hawkish Fed

The optimism that silver investors were enjoying earlier in the month when the metal was holding above $20 an ounce have been washed away in the last few weeks with the price now flirting with the lows reached in July and threatening to sink down to the levels last seen in July 2020. As has been the case for much of the year, the key driver for silver’s price action is the words and actions of the Federal Reserve. Hopes that the US central bank may not need to be so aggressive with its future monetary policy in the wake of economic data that showed the US was holding up surprisingly well despite high inflation have been replaced by the stark reality following comments from Fed Chair Jerome Powell that the bank will continue to raise interest rates for the foreseeable future. Silver’s lack of yield means that the metal struggles in an environment where interest rates are rising so this reminder that plenty of action is still needed by central banks across the world to curb persistently high inflation has brought the price of silver shuddering down. How silver reacts as it trades near the lows of last month will be instructive after the metal appeared to form a strong bottoming of its price when it sank to those levels. With a fundamental outlook that still points to healthy demand for silver due to its use in key industries such as solar energy and electric vehicles, investors may once again see these sub-$19 an ounce levels as 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 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

31/08/2022