Have Silver Prices Bottomed Out Yet?

The precious metal pulled back this week from its highest level since May after news broke that U.S President Biden would keep Jerome Powell as Chair of the Federal Reserve, which markets interpreted as a hawkish signal.

However, with inflation running at its highest in three decades and with interest rates expected to remain low into next year – indicates over the long term, Silver prices should remain well supported.

Silver is not only an excellent inflation hedge, but it’s also a key component in everything from electric vehicles, renewable energy to 5G technology. Based on our proprietary research, photovoltaic demand for silver could exceed 3000 tonnes by the first half of 2022 – while the 5G rollout – which is only just beginning – will be a major driver of demand for years to come.

Silver is a very thin market that generally has a habit of lagging behind the rest of the commodities complex for extended periods of time – but once it gets going, it really gets going. In my opinion, any substantial pullbacks this month should be viewed as buying opportunities.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

For a look at all of today’s economic events, check out our economic calendar.