Silver is over 40.00 USD per ounce as of this morning. Speculative zeal has taken the commodity upwards with solid price velocity the past couple of days.
40.6400 USD is now being traversed by Silver as of this writing. The achievement of going above 40.0000 for Silver has been accomplished before however. The commodity has touched these apex heights and beyond in 1980 and 2011. While Silver is considered a precious metal, it is also a commodity and its ability to be manipulated in the speculative world of commodities needs to be understood by day traders.
Silver is touching highs this morning as Gold also traverses within lofty values. However, Silver for all its glory and ability to be looked upon as a desirable metal must be considered suspiciously by speculators. Simply put Silver can be mined more efficiently and much greater quantities than Gold. Silver production is based on a supply that is much larger and easier to attain for companies when it is needed.
Silver Production and Speculation
If the price of Silver moves higher, mining companies are likely to produce more of the commodity. This limits the ability of Silver to be considered in the same conversation as Gold. But this isn’t necessarily a bad thing, because the lower value base of Silver often gives speculators more bang for their wagers. Silver has been trading near 37.0000 via sticky technical charts since June. And it must be admitted like Gold, Silver has achieved a very solid bullish trend since August of 2024 when it was near the 27.000 USD ratio rather consistently.
Thus, after saying Silver can be produced more easily than Gold, there also is evidence the past year that the commodity has found a solid group of large players and speculators who continue to purchase more. If Silver is able to sustain its price above 40.0000 and incrementally produce upwards bullish momentum from current levels this could be a significant signal.
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Silver and Looking for Higher Targets
The past handful of months for Silver, like Gold, has demonstrated an ability to maintain rather durable support levels. The past couple of days in trading in both metals points to a correlation. Speculators and investors do seem to be showing signs of purchasing strength.
- Day traders in Silver who want to pursue higher ground should be extremely careful and use strict stop losses.
- Silver does have a history of spiking and speculators without deep pockets should guard against sudden jolts which can turn into negative betting results quickly.
- Looking for more upside in Silver under the current circumstance is tempting, but within its elevated heights also highlights the need to be cautious.
- If Silver can find legitimate support above 40.0000 in the near-term, it might signal additional buyers remain.
- However, Silver it must be pointed out, has a history of seeing its elevated values disappear. Is this time different?
Silver Short-Term Outlook:
Current Resistance: 40.7500
Current Support: 40.0000
High Target: 42.0010
Low Target: 37.7500
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