Buy silver from support levels

Silver is a market that lives and breathes two things: central bank policy shifts and structural changes in global industry. Right now, the precious metal finds itself between powerful fundamental tailwinds and the ever-present threat of short-term pullbacks caused by rate expectations.

So, what's driving the long-term story? Key fundamental factors include:

• Industrial demand and supply deficits. Let's start with the biggest one. Silver is quickly being hailed as the ultimate "green metal" for production. The industrial sector accounts for roughly 70% of total global demand, propelled by solar panel production (photovoltaics), electric vehicles, and the infrastructure that powers artificial intelligence (AI) data centers. The market is now staring down its sixth consecutive year of a structural supply deficit. But here's the rub: production growth remains hamstrung, as silver is most often extracted as a byproduct of copper, zinc, and lead mining. 

• Correlation with gold. Next, we should turn to the yellow metal. Silver has always played second fiddle to bullion, though with a twist: it is a more volatile, "high-beta" version. If gold keeps smashing all-time highs amid geopolitical turbulence, the white metal is likely to catch a significant speculative tailwind from major investors.

• Fed monetary policy. And finally, the wildcard is the US regulator. The American central bank's hawkish posture and stubbornly high interest rates weigh on non-yielding precious metals by bolstering the dollar. That said, any hint of policy easing in the second half of 2026 or in 2027 could flip the script in an instant, causing prices to soar.

Judging by the historical gold-to-silver ratio, the second asset still looks cheap compared to the first one. With a structural supply deficit in play, industrial demand isn't going anywhere. And this brings us to the trade: over the next 6 to 12 months, the base case for the metal is straightforward—a rebound off the lows. 

The ultimate recommendation is to buy silver at the $57.00 support. Place Take Profit at $67.00. Set Stop Loss at $52.00.

Calculate your open position so that a potential loss (protected by a Stop Loss order) is limited to 1% of your deposit. If your account balance does not allow you to enter a position of this size, it is better to skip the trade and wait for other market signals that meet low-risk criteria.