Silver Price Forecast – Silver Markets Continue to Grind Higher

Silver markets continue to get a bit of a boost as we have seen the markets grind higher over the last couple of weeks. Now that the “retail short squeeze” is out of the way, we can start to return to a little bit of normalcy. That of course means that we are probably going to continue the uptrend, but maybe not straight up in the air like some people had originally hoped. That being said, I do like the idea of buying pullbacks as the stimulus package will at least in theory push up the demand for silver.

SILVER Video 16.02.21

Industrial demand for silver is one thing, but we are also looking at the possibility of inflation coming down the road and that should drive up the value of precious metals overall. That being the case, it is worth noting that silver tends to be a bit more erratic than gold, so you will most certainly want to be somewhat cautious with your position size. All of that being said, I do think that we are looking at a scenario where we can simply jump in and trade recklessly. I think you will need to be very cautious about what your position size going forward, because obviously we will have a lot of noise out there that could come into play.

Because of this, I like adding little bits and pieces along the way on dips, so that we can take advantage of value if and when it shows up on pullbacks. To the upside, I believe that the $30 level will be the target, and more than likely a very tough resistance barrier to break out.

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