Silver Price Forecast – Silver Markets Sitting on Support Levels

Silver markets have rallied slightly during the trading session on Monday to kick off the week, but quite frankly the market is sitting on top of significant support in the area just above the $15 level, an area that I think will cause quite a bit of support, as it is psychologically important. Short-term pullbacks could be buying opportunities but if we were to break down below the $14.95 level, then I think we could go as low as $14.50 rather quickly. At this point, it’s obvious that the market is probably going to continue to see a lot of noise, because silver behaves a little bit different than gold.

SILVER Video 21.04.20

The silver market has the built-in component of industrial use, so that of course works against and in this type of environment. Ultimately, I think that silver will eventually see a little bit of a bounce given enough time, but the question is whether or not we are going to see enough precious metals demand to drive silver higher. Ultimately, I think it probably does when the day, but if you are making the precious metals argument, you will be doing much better and gold, due to the fact that the gold market has very little industrial use, so as there is less demand for finished goods, silver could struggle just a bit. This doesn’t mean it can’t go higher, I just think that it will go as high as gold will on percentage terms. Ultimately, this is a market that I am bullish, but I think that it should be with low leverage, due to the fact that silver will continue to underperform gold.