Silver Forecast September 18, 2012, Technical Analysis

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The silver markets fell during the Monday session as the rally took a small break during the Monday session. We currently see the $33 level as support, as well as the $31 and $30 level. We think that this market is just in the beginning of a massive bull run, and new highs will more than likely be seen in the relatively short order. We think that as is market pulls back, it will simply be another buying opportunity presenting itself. There is far too much quantitative easing out there to even consider selling the precious metals right now, and we actually preferred to buy physical silver if we get the opportunity.

You can use the SLV ETF as well. It moves based upon the price of silver and various silver related companies such as miners. This is a good way to get general exposure to silver as a whole, but it is and as pure of a play as the futures contracts would be. As for us, we have been using a combination of all three, but have been especially interested in physical silver as it becomes a long-term investment. After all, it wasn’t that long ago that silver was somewhere near three dollars an ounce.

As the world continues to prime their economies through quantitative easing, there could be no doubt that precious metals in hard assets such as silver, gold, oil, and copper will all benefit in the long run. This is simply the supply and demand issue as a virtually unlimited amount of dollars can be pretty, but you cannot make silver.

Another interesting point about silver is that 90% of all silver ever mind is being used already. This means that there is a continual shortfall of supply in this market, and after all that is the biggest factor in the price of anything: availability. Silver is used in industrial and precious metals situations, and as such we think it is the best of both worlds. In a lot of ways, it’s like owning copper and gold at the same time.

 

Silver Forecast September 18, 2012, Technical Analysis

Silver Forecast September 18, 2012, Technical Analysis

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About: FX Empire Analyst - Christopher Lewis

Christopher is a part of the FXEmpire.com analysis team. He writes Forex and Commodities technical analyses on daily and weekly basis. Christopher writes his analyses in a professional and yet simple to understand manner. His analyses are available in both text and videos.

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