Silver Price Forecast – Silver Markets Very Quiet
Silver markets have gone back and forth during the trading session on Wednesday, as we are running into trouble at the $28 level. The $28 level is an area that has caused resistance more than once, and I think if we can break above there then it opens up the possibility of going towards the $30 handle. The $30 level of course is a major resistance barrier that people are trying to smash through. If we do, then the silver market will more than likely go looking towards the $50 level. That is an area that has been tested a couple of times, and I think it will attract a certain amount of attention.
SILVER Video 25.02.21
Physical silver is almost impossible to get right now, although it is getting a bit better. Ultimately, the markup is ridiculous, and therefore you have to be very cautious about buying physical. Recently, I have seen silver rounds sell for as much as $40. This is a complete disconnect from the futures market, so with that in mind I think that we could see a huge spike given enough time, as the market has been seen massive influx into the market due to the idea of stimulus causing more demand for industrial models. If the “reflation trade” comes back into favor, then it makes sense that the silver market will be one of the major beneficiaries of massive demand. Furthermore, the US dollar starts to fall that could put bullish pressure again on the silver market. Overall, I have no interest whatsoever in trying to short this market, and I think that pullbacks continue to offer buying opportunities near the 50 day EMA.
For a look at all of today’s economic events, check out our economic calendar.