Silver Price Forecast – Silver markets struggle yet again on Tuesday

Silver markets continue to be very sensitive to the US dollar, falling rather rapidly as the emerging markets continue to struggle. With that being the case, it’s likely that we will continue to see a lot of negative pressure in this market from the short term. However, in a somewhat ironic twist I have been buying a lot of physical silver because it is historically cheap. Ticking the leverage out of the equation is the best way to play this market if you are a buyer. That is more of an investment and less of a trade. I believe that there is a trade to be had every time we rally though, and most certainly that trade is selling over. If we break down below the $14 level, that should open the door for a move down to the vital $12 level which is even more supportive on the longer-term charts.

In general, this is a market that I think continues to be driven by the greenback more than anything else, and I think that we will continue to see major issues around the world, not the least of which will be concerns about global trade. That could drive down demand for silver so it could be a bit of a “double whammy.” However, I would be remiss to suggest that the supply and demand equation has much to do with this market, because as soon as silver is pulled from the ground, 90% of it is already spoken for as far as demand is concerned, and that’s been the case for years.

SILVER Video 12.09.18