Silver Price Forecast – Silver Markets Break Through $15

Silver markets broke down significantly during the trading session on Tuesday, breaking through the $15 level. By doing so, it suggests that the market is going to continue to go a little bit lower, but I think there is a certain amount of support at the $14.50 level, extending down to the $14 level. If we were to break down below the $14 level, then we could get significant bearish pressure come into play, which isn’t necessarily impossible, despite what gold may do. After all, even though the silver markets get a little bit of a boost due to the precious metals aspect, it also has a major industrial component built in, and that of course doesn’t do it any good.

SILVER Video 22.04.20

With global demand shrinking when it comes to base metals, silver is going to continue to get hammered if people focus on that. At the very least, I anticipate that silver is going to underperform gold, something that we have clearly seen over the last several months. We need not only the precious metals aspect to come back but we also need the industrial component to come back as well. I think at this point it’s almost impossible to see a scenario where the market outperforms the gold market, so at the very least I think you should be looking at a bit of a spread trade between the two markets. Although I like silver for a longer-term trade, I do that with physical, and not highly levered positions. $14 will be a crucial level underneath to determine whether or not we can hang on to the bullish pressure.