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Keep An Eye On The Big Picture For Silver Prices

By:
Phil Carr
Published: Jul 23, 2021, 07:50 UTC

Silver prices are currently fluctuating around the $25 an ounce mark amid a surge in the pandemic and concerns that the highly contagious Delta variant of the coronavirus could derail the global economic recovery.

Keep An Eye On The Big Picture For Silver Prices

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However, if you look at the bigger picture, fundamentally, nothing has changed. Central banks around the world remain firmly committed to their massive quantitative easing programs, while allowing inflation to run hotter than usual, for some time yet.

And let’s not forget the whole ‘Infrastructure spending boom and Green Energy Revolution’, which is currently taking shape across the global economy.

That in itself presents an incredible opportunity for traders to increase their exposure in Silver at huge discount before it really takes off.

Silver is not only an excellent inflation hedge, but it’s also a key component in everything from electric vehicles, renewable energy to 5G technology. Based on our proprietary research, photovoltaic demand for silver could exceed 3000 tonnes in 2021, while the 5G rollout – which is only just beginning – will be a major driver of demand for years to come.

Goldman Sachs see silver prices rising to $33 an ounce in H2 2021, boosted both investment and industrial demand for the precious metal – and our research suggests similar.

In my opinion, Silver is still definitely the best trade right now and any substantial pullbacks should be viewed as buying opportunities.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Phil Carrcontributor

Phil Carr is co-founder and the Head of Trading at The Gold & Silver Club, an international Commodities Trading, Research and Data-Intelligence firm.

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