In response to better than predicted U.S. economic data last week, silver was exposed to a bearish trend although was not been as badly effected as gold. This negative effect seen today on pricing is not expected to last because of other pressures on their way from both world politics, the slowing of Quantitative easing and a bullish oil trend.
Although the U.S. has had some good figures from economic data today, they are seemingly acting alone on military action against chemical weapons used in Syria. World diplomatic politics may put pressure on the U.S. dollar and political unrest is not usually a positive in a country’s currency.
Even still, analysts predict that commodities will recover and reach a very bullish market With these pressures and the expected slowing of Quantitative Easing after so much currency has been printed across the globe they do not expect a positive outcome. Commodities and in particular silver are now offered up as a safe haven for investors once again.
Silver is more likely to see bigger gains than gold in the long run because we are using up the worlds finite supply of silver quicker than gold. In addition silver is not so frequently recycled and it is used in larger quantities in the industrial world compared to its richer cousin. It has been seen as being undervalued against gold for quite some time.
Supplies are predicted to last only until 2021 and 2037, so we can only imagine how valuable the last supplies of silver will be.
Silvers pressures for demand are coming from contrasting directions, here are a few, industry, jewellers, physical investors and coin collectors. China, Japan and India are pushing forward with buying for industry and in particular silver materials used in the production of solar power.
Silver has not recovered from the last two days trading, it’s making its way up to $24 per ounce, and two days ago it was around $24.50. However trading is being tied up now for the long U.S. weekend and close of business in London, so no dramatic moves are expected and none seem to be happening.
Analysts sitting on silver fence
Honestly analysts are either on the fence or in debate over which way it is likely to move on Monday because of the issues mentioned. If there is further bearish movements on Monday morning it will not be a surprise to see the buying momentum to increase. If it becomes bullish the market won’t necessarily switch to selling because they could hold trades for greater gains over the next weeks and months, so again this may cause an issue with physical silver supply with more buyers and less sellers in the market.
Keep an eye on political news events this week and try to get ahead with your trades early. For the latest silver prices visit coininvest.com and take advantage of bargain buys for physical silver.