Silver Price Forecast – Silver Markets Continue to Slump

Silver markets have rallied a bit to kick off the trading session on Monday, but then turned around to fall towards the $15 level. At this point, if we break down below the $15 level, then it is likely that we will see further selling. I think the $14.50 level will be targeted initially, perhaps even the $14.00 level. Ultimately, this is a market that should continue to see plenty of buyers underneath, but keep in mind that silver has the misfortune of also being an industrial metal, so that is working against it as the economy is struggling.

SILVER Video 28.04.20

The 50 day EMA above has shown itself to be rather resistive, and therefore I think it is only a matter of time before the sellers come back in, so although I do believe in silver longer-term, I believe that what we are going to see is more stubborn behavior. If you can trade gold instead of silver, that is probably the way to go if you are bullish of precious metals. Ultimately, the silver market is one that you can buy, but you are better off buying with almost no leverage or perhaps even better yet, using physical silver because in the long run we should have inflation with central banks around the world pumping more currency into the world. At this point, there is also the spread trade, meaning that people will buy gold and sell silver simultaneously. In that trade, you simply bank of the difference between the two movements. All things being equal though, I believe that both of them go higher over the longer term.