Silver is certainly gathering some upside momentum, but the timing of when it might accelerate toward new highs may depend on how the Fed’s shifting stance toward inflation plays out.
A monthly close above $26 triggers a potential measured upside target of $34, the next major resistance. There is some resistance at $28.
Silver against foreign currencies is battling resistance that dates back to 2012. A breakout puts it in a good position to move towards the all-time high.
Morgan predicts silver hitting $50, potentially consolidating briefly before rising further due to industrial demand, suggesting a bullish trend ahead.
The legislation creates a sales and use tax exemption for precious metal bullion. The new law defines “precious metal bullion” as coins, bars, rounds, or sheets that contain at least 35 percent gold, silver, copper, platinum, or palladium.
Since the gold-silver ratio tells us the price of gold relative to silver and vice versa, we can look at historical trends and draw conclusions about the prices of both metals.
Ian gives insight into what the large physical silver deficit might mean for the silver markets, and he discusses the high-grade Santa Ana Silver-Gold (75/25) project.
Silver investors have been disappointed with silver’s performance of late, the metal being range-bound at around $23-24 an ounce. It certainly hasn’t been tracking gold’s rally.
An allocation to gold and silver fits squarely within the objective of protecting Utah against financial risks and would logically be included in a list of safe and liquid investment options.
In any event, investors should prepared for high inflation to persist. Inflation risks may be to the upside near term as the election approaches and new stimulus schemes get rolled out.
