Silver continued its recent correction this past week even as it gained a small 0.1%. We can’t rule out a test of that uptrend line from the February low that is currently near $28.
Silver enthusiasts hear about its use in electronics, solar panels, and the Green Energy Revolution but a hidden use of silver in the Military Industrial Complex is rarely discussed.
The silver market is already running significant deficits with silver demand outstripping supply. The structural deficit in 2023 came in at 184.3 million ounces.
Silver confirmed a breakout when it closed over $30. So, this appears to be test of the breakout zone. But a test of the 50-day MA near $28.70 can’t be ruled out.
Maharrey says: "Silver has historically outperformed gold in a gold bull market, so if you're bullish on gold, you should be even more bullish on silver."
Lin projects we could see silver surpass the record of $50 an ounce very quickly. And even if we don't see record prices in the coming months, the outlook for silver is positive.
Silver peaked at $32.75, fell to $30.24, rose to $32.51, and dropped again to $30.44. Testing under $30, the breakout point, is possible. Strong support is evident down to $28.
