Positive outlook supports silver

07 March 2023 226
Positive outlook supports silver

Silver is lagging behind gold, providing some upside potential. In fact, this metal has been more volatile over the past decades, so it could quickly recover if the precious metals continue to rise. 

Silver has seen similar upside drivers as gold. Most analysts are still bullish on the metals’ prices this year. In fact, investors laid all negativity connected to global rate hikes into the price of these assets. That’s why any softening of economic prospects may trigger their instant revaluation.

 

The demand for silver in India is likely to increase as new investment products are introduced. It’s worth mentioning that India has already been one of the largest silver consumers.

Indian investors preferred to hold physical silver in the past. But new investment options, including exchange-traded silver products (ETPs) and digital silver, will provide new venues for domestic buyers to get their hands on the metal, as reported by the Silver Institute.

Increased demand would be positive for the precious metal's price. 

 

Keith Neumeier, president and CEO of First Majestic Silver, believes that silver mines are about to be a major area of interest for automakers. Therefore, car manufacturers are determined to seize on the supply of critical materials that are essential for electric vehicle production.

This probability, coupled with demand from other industries, may push silver prices higher than $125 per ounce. Of course, this is a long-term outlook, but investors could be interested in taking high growth targets right now.

 

Based on the technical analysis, silver has been moving at the lower boundary of the uptrend. The dollar index rebounds from its local highs, which also gives room for precious metals growth. So that there is a chance to open long positions with a short stop. 

The growth target will be the local high near the level of $21.30. Stop-loss is placed when the price goes below this trend and updates yesterday's low. This is the level of $20.96.

 

Silver is likely to grow:

Take profit – 21,30

Stop-loss – 20,96

This content is for informational purposes only and is not intended to be investing advice.

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