Following the continuation of the February 25 article on gold, silver was also written on the same day and today, almost three months later, we are going to do an update on the silver metal.
That day February 25, I commented on silver, the following words:
Silver, while less well known than gold, also has a strong investment case. It is a highly versatile metal, used in a wide range of industrial applications, including electronics, solar panels, and medical devices. As such, its price is influenced by both industrial demand and investor sentiment. In recent years, silver has gained popularity among investors as a cheaper alternative to gold, with similar features as a store of value and inflation hedge.
TA: Regarding silver, more of the same, after an upward end of the year, the new 2023 has brought setbacks. We can observe in the long term, how it seems to be enclosed in a triangle.
Looking ahead, the future of precious metals appears bright. While the global economy continues to face significant challenges, the long-term outlook for gold and silver remains positive. Demand for these metals is expected to remain strong, driven by a combination of factors, including rising inflation, increasing geopolitical uncertainty, and a growing appetite for alternative assets.
I am attaching the graph for February 25 to see where it was and what it did next.
What has happened in the last three months at a fundamental and technical level, around silver?
The role of silver bullion in Central Banks reserves:
While gold is the best-known precious metal held by central banks, some central banks also hold silver bullion in their reserves. Here are some reasons why central banks have silver bullion and are hoarding more:
1. Industrial applications
Silver is used in many industrial applications, such as electronics, medical devices, and solar panels. Central banks hold silver as a way to ensure they have a supply of this important industrial metal.
Like gold, silver provides diversification benefits to central banks. As a different asset class, silver has a low correlation to other assets like stocks and bonds. This means that by holding silver, central banks can reduce the overall risk of their portfolio.
3. Lower cost
Compared to gold, silver is a lower cost metal and central banks can hold a larger amount of silver for the same amount of money. This means that central banks can achieve a greater degree of diversification by holding both silver and gold.
4. Investment potential
Silver is also an investment asset and market conditions can influence its price. Central banks may hold silver as a way to generate returns on their investment.
Top silver-consuming countries, in order:
· United States.
· United Kingdom.
TA may 18
Now we are on May 18 and after the February article, we have observed how silver has had an upward movement, as expected within the theoretical exposed triangle, seeking its ceiling and overcoming it.
In an approach to fewer years, in the second superchart exposed in this article, we can observe another type of complementary analysis:
From the highs of 2011, the price began a downward movement and once finished, the price found a movement of great strength in 2020, of a great bullish rally, which stopped in the same year, at the end of 2020.
From there the price is making a kind of bearish continuation flag (please imagine the flagpole in that big rally movement of 2020) and the “fabric” of the flag, encased in the two lines painted in blue.
We are observing what could be, a theoretical overcoming of the upper part of the cloth, but this last movement of fall, is being to look for the support of continuation to the rise, within this new bullish movement in which silver seems to be already starting. With beginnings at the end of 2022 and that during 2023, it should take it to higher levels.
If you follow my articles regularly, I always try to give my best version, to explain what my eyes see on supercharts like this, and help, if you decide to invest, to find the best points of purchase or sale, while my words should not be taken as reference in being a recommendation. I do it as an analysis, but if you decide on your own, follow my words, you will understand that I am not often wrong. I believe that silver has a big future. Good luck with your investment decisions.
On the other hand, and within where BELOBABA is headed, for future clients of this fantastic web3 banking, perhaps investment ideas can be found, and more of my words, to help better understand the market as a whole for correct decision making. BELOBABA customers will have that right.
I remember that this is not a buy recommendation. We keep in touch and continue with more articles coming, on a regular basis.
Search the BELOBABA feed on Linkedin, my current articles for the year 2023, to expand more information that may be of interest to you. I add the list of articles written in 2023 to date.
Have a good day and silver day for you!!!!