Silver Price Forecast – Silver markets continue to chop

Silver markets went back and forth during the trading session on Wednesday as we continue to dance around the $17.00 level. This is an area that of course attracts a lot of attention so the fact that we are dancing around should not be a huge surprise.
Christopher Lewis
Silver daily chart, August 15, 2019
Precious metals

Silver markets have been back and forth during trading on Wednesday as we continue to pay quite a bit of attention to the $17.00 level. The market will more than likely continue to struggle for clarity in the short term, as we are paying attention to a lot of different moving pieces. We have a lot of “risk off” attitude out there, but we also have to keep in mind that silver is an industrial metal as well, so it may shrink a bit of demand due to the fact that we have a slowing global economy. However though, we also have to understand that there are other factors that could send this market higher.

SILVER Video 15.08.19

The initial reason that this market should go higher is that interest rates are falling around the world. There are over $17 trillion worth of Government Bonds around the world offering negative yield. Just think about that for a minute, and whether you would be wanting to buy those bonds. Silver can be a store of wealth, and therefore I think that we are looking at an opportunity to piggyback on those who are much larger than us, looking to protect their wealth. With central banks around the world looking to cut interest rates and monetary policy for some time, we continue to see a lot of money flow into the precious metals sector. This is not only true with silver, but also true with gold and platinum as well.

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