investing in silver

Summary:

  • The international oil benchmark fell around 6% on Friday.
  • Silver fell below the $22 per-ounce mark on Friday, closing at its lowest level since June 2020.
  • Failed negotiations between Russia and the Ukraine.

Read next: Coffee Prices Rising Amidst Tight Supply Concerns, WTI Oil Facing Its First Weekly Decline Since Mid-April, Platinum Prices At 6 Week Low 

Brent Crude Oil prices remain supported

Brent Crude Oil prices fell to almost 5 week lows on Monday amidst concerns around slowing global economic growth and fuel demand which outweighed expectations of higher near-term consumption and ongoing supply issues. The international oil benchmark fell around 6% on Friday amidst concerns of global economic fallouts from higher interest rates shook financial markets.

U.S Energy Secretary Jennifer Granholm warned markets of a “continued upward pull on demand” over the weekend, and of the likelihood of high gasoline prices continuing. Crude prices have been supported by

Silver: Strong and Weak at Once. How Is That Even Possible?

Silver: Strong and Weak at Once. How Is That Even Possible?

Przemysław Radomski Przemysław Radomski 21.12.2021 16:01
  Gold is barely crawling up, while silver is boldly climbing the market ladder. When will its rungs turn slippery, causing the precious metal to fall?  Yesterday’s session was particularly uneventful in the case of the precious metals market, as crude oil and the general stock market stole the spotlight. Consequently, today’s analysis will focus on what’s happening in pre-market trading, as that’s what appears to be more important. At the moment of writing these words, gold is up very modestly – less than 0.2%. Consequently, after rallying to about $1,815 (in tune with my Thursday’s analysis) and invalidating the breakout above the rising resistance line, gold appears to be making another attempt to rally, but the strength of the move is very limited. Predicting higher gold prices might not be the best idea here, as the yellow metal was not able to even get to the red line, let alone to its previous monthly high. Silver, on the other hand, has moved quite visibly higher so far today. While gold moved higher by less than 0.2%, silver rallied by about 1.5% and is now trading very close to its previous monthly highs. This is very interesting, because silver is showing strength and weakness at once. How is that possible – one might ask. It’s the same as with trends or forecasts for silver. They can be bearish and bullish simultaneously, depending on the time frame that one focuses on. For example, I think that the very long-term outlook for silver is extremely bullish, but I also think that the medium-term trend is bearish. The short-term trend is also bearish, but the immediate-term trend is bullish. So, am I bullish or bearish on silver? Answering this without specifying the time frame is bound to create misunderstandings. Getting back to silver’s relative performance, it’s been weak when taking into account the last couple of weeks – please note how little of the recent monthly decline silver has corrected compared to gold. Gold recently moved to its October highs, but silver topped a few dollars below its October high. What does it tell us? Silver is likely to fall hard, also compared to gold, probably in tune with the general stock market – similarly to what happened in 2008 and 2020. That’s the same kind of performance that we saw in the very early parts of the huge declines. At the same time, silver is strong compared to gold on an immediate-term basis. This means that we’re likely at or close to a short-term top. Why? Because that’s what the precious metals market tends to do when it’s topping, and it’s one of the great gold trading tips to monitor the PM market for these situations. One could debate why this is really the case, and there are quite a few theories (the silver market is smaller, so more prone to sudden moves, etc.), but the point is that it simply works. Please note that some things – like the Pareto principle (a.k.a. the 20:80 rule) – can work and be very useful, even if it’s not clear why they work. Consequently, it seems that the days of this short-term corrective upswing are either over or about to be over, and that the precious metals sector will return to its medium-term decline any day now. Thank you for reading our free analysis today. Please note that the above is just a small fraction of today’s all-encompassing Gold & Silver Trading Alert. The latter includes multiple premium details such as the targets for gold and mining stocks that could be reached in the next few weeks. If you’d like to read those premium details, we have good news for you. As soon as you sign up for our free gold newsletter, you’ll get a free 7-day no-obligation trial access to our premium Gold & Silver Trading Alerts. It’s really free – sign up today. Przemyslaw Radomski, CFAFounder, Editor-in-chiefSunshine Profits: Effective Investment through Diligence & Care * * * * * All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' associates only. As such, it may prove wrong and be subject to change without notice. Opinions and analyses are based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are deemed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.
Gold Chart And Silver Chart Look Quite Similar We Might Say...

Gold Chart And Silver Chart Look Quite Similar We Might Say...

Przemysław Radomski Przemysław Radomski 19.01.2022 15:10
  While the USD show is gaining applause, silver has decided to present its repertoire too. Was its rally just a magic trick or a good omen for gold? Bond yields soared once again, just as I’ve been expecting them to for many months now. The reaction in some markets was as expected (the USD Index soared), but in some, it was perplexing. Gold moved lower a little, miners declined a bit more, and silver… rallied. Who’s faking it? Well, perhaps nobody is. Let’s look at the yields’ movement first. The 10-year bond yields have just moved to new yearly highs and are also above their 2021 highs. This happened just after they moved back to their 50-week moving average (marked in blue). For a long time, I’ve been writing that the 2013 performance is likely to be repeated also in this market, and that’s exactly what is taking place right now. Bond yields are doing what they did back then. If history continues to rhyme, we can expect bond yields to rally further, the USD Index to gain, and we can predict gold at lower prices. Speaking of the USD Index, let’s take a look at what it did yesterday. It soared over 0.5 index points, which was the largest daily increase so far this year. This happened after the USD Index moved to a combination of powerful support levels: the rising medium-term support line and the late-2020 high. The tiny attempts to move below those levels were quickly invalidated, and the USD Index was likely to rally back up; and so it did. What’s next? The uptrend was not broken, so it’s likely to continue. In other words, the USD Index’s rally is likely to continue, and this, in turn, is likely to trigger declines across the precious metals sector. Gold didn’t react with a significant decline yesterday – just a moderate/small one – which some might view as bullish. I’d say that it’s rather neutral. The rally above the 2021 highs in bond yields might have come as a shock to many investors, and they might not have been sure how to react or what to make of it. It might also have been the “buy the rumor, sell the fact” type of reaction. Either way, it seems to me that we’ll have to wait a few days and see how it plays out once the dust settles. The volume that we saw yesterday was huge. After a period of relatively average volume, we saw this huge volume spike. I marked the previous cases with red arrows. In those cases, such volume accompanied gold’s sizable declines. This time, the volume spike accompanied a $4.10 decline, which might appear perplexing. Fortunately, gold is not the only market that we can analyze, and – as it’s often the case – context provides us with details that help to make sense of what really happened. Let’s check the key supplemental factor – silver’s price action. While gold declined a bit, silver soared over $0.5! The volume that accompanied this sizable daily upswing was the biggest that we’ve seen so far this year too. The latter provides additional confirmation of the importance of yesterday’s session. What was it that happened yesterday that was so important? Silver outperformed gold on a very short-term basis! This is profoundly important, because that’s what has been accompanying gold’s, silver’s, and mining stocks’ tops for many years. Knowing to pay attention to even small signs of silver’s outperformance is one of the useful gold trading tips, and the extent of the outperformance is what determines the importance of the signal (and its bearishness). The extent was huge yesterday, so the implications are very bearish. Yes, silver moved to new yearly highs as well, but silver is known for its fake breakouts (“fakeouts”), which usually happen without analogous moves in gold and mining stocks. Since neither gold nor miners moved to new yearly highs yesterday, it seems that silver “faked out” once again. Silver is up in today’s pre-market trading, and gold is up only slightly, but the latter is not even close to moving to new 2022 highs. The GDX ETF is actually down in today’s London trading (at the moment of writing these words). Speaking of mining stocks, let’s take a look at what happened in them yesterday. In short, they declined – by over 1%, which is about five times more than gold. Since silver outperformed gold, while gold miners underperformed it, the implications for the precious metals sector are bearish. Thank you for reading our free analysis today. Please note that the above is just a small fraction of today’s all-encompassing Gold & Silver Trading Alert. The latter includes multiple premium details such as the targets for gold and mining stocks that could be reached in the next few weeks. If you’d like to read those premium details, we have good news for you. As soon as you sign up for our free gold newsletter, you’ll get a free 7-day no-obligation trial access to our premium Gold & Silver Trading Alerts. It’s really free – sign up today. Przemyslaw Radomski, CFAFounder, Editor-in-chiefSunshine Profits: Effective Investment through Diligence & Care * * * * * All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' associates only. As such, it may prove wrong and be subject to change without notice. Opinions and analyses are based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are deemed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.
US and European Equity Futures Mixed Amid Economic Concerns and Yield Surge

Palladium Price To Struggle In Recovery, Silver Prices (XAGUSD) Facing Downward Pressure

Rebecca Duthie Rebecca Duthie 26.04.2022 11:30
Summary: Palladium and Silver prices are being affected by the hawkish Fed and the China lockdown. Could Wheat Futures prices be in recovery mode? Palladium price to struggle in recovery. The price of Palladium fell almost 13% by the end of the trading day on Monday. Since the market opened this morning, palladiums price has increased by almost 4%, rebounding as a result of concerns around reduced demand due to the lockdown in China. The recovery of Palladium looks fragile for the future and the escalating COVID-19 situation in China will put pressure on the recovery of this commodity. Palladium Jun 22 Futures Read next: U.S bond Yields vs Gold Futures, Volatility In The Price Of Coffee, Brent Crude Price Falls  Silver prices are seeing consistent declines. Since the market opened this morning the price of Silver futures have slightly increased, however over the past week, the prices have been falling quite drastically. This drop in price comes hand-in-hand with the hawkish Fed and uncertainties around China and their COVID lockdowns. The recovery of Silver is uncertain amidst the current market uncertainty. Silver May 22 Futures Wheat Futures prices. Chicago Wheat Futures prices are up by almost 2% since market opening today. Despite the adverse weather conditions and the Russia-Ukraine conflict causing concerns around supply, the price of Wheat Futures has still seen a fall over the past week. Perhaps given the concerns in China we will see the price of Wheat Futures recover in the coming weeks. Chicago SRW Wheat Futures Jul 22 Read next: Carbon Net-Zero Goals Affecting the Prices of Platinum, Copper and Lithium   Sources: Finance.yahoo.com
Russia's Active Production Cuts Could Be Grounds For A Bullish Shock

Demand For Brent Crude Oil Rises, Silver Prices Rise, Improved Corn Crop Eases Supply Concerns

Rebecca Duthie Rebecca Duthie 23.05.2022 11:11
Summary: Brent crude oil prices are rising in response to increasing demand. Silver prices are rising again. Improved weather conditions is leaving the market hopeful for an improved corn crop. Read next: (XAUUSD) Gold Prices Rise In The Wake Of Concerns Around U.S Economic Slowdown, Crude Oil Prices Rally In Response To Increasing Demand And Concerns Around Supply, Cotton Prices  Brent Crude Oil prices rising With the expected increase in demand for Brent crude oil in both the United States and in China's post-lockdown world, the price of Brent crude oil is rising. U.S gasoline and fuel prices remain at a record high level as the busiest driving season approaches. The market expects the demand for Brent crude to increase with the easing of lockdowns in China, causing further concerns around supply in an already tight market. Brent Crude Oil Futures Price Chart Silver prices rise again. A weakening US Dollar has aided in the rising price of Silver. Silver is considered a safe asset and is commonly used as a hedge against inflation which is attractive in the current economic environment. In addition, the rise in the price of silver also comes with investor need for safe-haven assets with the geo-political tensions and the concerns around the slowing global growth. Silver Jul ‘22 Futures Price Chart Corn futures fall Late last week the price of corn futures fell, this came in the wake of investors buying wheat and selling corn in spread trades amidst signs of improved U.S corn crop planting. The improved corn planting is easing concerns around supply, driving the price lower. Corn Jul ‘22 Futures Price Chart Read next: ECB Offering The Euro Support (EUR/USD), Strengthening Of The Renminbi Supporting The EUR and GBP, SNB Turns Hawkish (EUR/CHF) - Good Morning Forex!  Sources: finance.yahoo.com, tradingeconomics.com
Powell signals Fed needs to be nimble, Canada Inflation hits near 40-year high, bitcoin tries to hold USD20k

Some EU Governments Are Still In Favour Of Banning Russian Brent Crude Oil, Investors Turning To Silver As Demand For Safe-Haven Assets Rise, Corn Prices Fall Amidst Easing Supply Concers

Rebecca Duthie Rebecca Duthie 30.05.2022 15:52
Summary: Lockdowns in China ease causing demand for Brent Crude to rise. Silver prices increase as market participants seek safe-haven assets. Supply concerns around corn are easing. read next (XAUUSD) Gold Prices Rose For Second Consecutive Week, Concerns Around Crude Oil Supply Continues To Drive Price, Soybean Prices Rising  Brent Crude Oil prices continue to rise The combination of Beijing and Shanghai beginning to come out of Covid-19 restrictions over the weekend and the ongoing European discussions regarding banning crude oil imports from Russia are causing concerns around supply to tighten. On Monday and Tuesday an EU governments will use a summit to continue to argue in favour of an embargo on Russian crude. The prices of Crude oil are going into their sixth straight month of gains amidst the supply concerns, as demand begins to rise back up to pre-pandemic levels. Brent Crude Oil Price Chart Silver prices are still on the rise A weaker US Dollar continues to give room for the price of silver to rise. Amidst continuing geopolitical tensions and growing concerns regarding slower global growth, investors are turning more towards safe-haven assets. Silver is considered to be a hedge against inflation, the Fed is still expected to tighten monetary policy by raising interest rates further at their next two meetings. Silver Jul ‘22 Futures Prices Corn prices are falling The price of corn futures fell late in May, to the lowest value in almost six weeks amidst expectations of higher supply and the easing of trading restrictions between major producers. Beijing and Brazil reached an agreement to begin corn exports from Brazil to China, after years of talks. In addition, actual planting of corn exceeded market expectations. The easing of supply concerns is slowly driving the price of corn futures down. Corn Jul ‘22 Futures Price Chart Sources: finance.yahoo.com, tradingeconomics.com
Corn Prices Recorded Their Biggest Weekly Gain, Gold Demand In India May Suffer A Temporary Setback

Saudi Arabia Hike Brent Crude Oil Prices, Demand For Safe-haven Assets Is Supporting Silver Prices, Corn Prices At 8 Week Lows

Rebecca Duthie Rebecca Duthie 06.06.2022 13:12
Summary: Saudi Arabia hiked their crude oil prices for July. Hopes of higher corn supplies thanks to hopeful USDA reports and easing trade restrictions between the major producers. Increased demand for Silver as a safe-haven asset drives the prices up. Read next: Saudi Arabia Indicates Plans To Increase Their Oil Output (EUR/USD), ECB Plans To Start Tightening Monetary Policy Still Set For July (EUR/GBP), (USD/JPY, USD/CHF)  Brent Crude oil prices surge as Saudi Arabia Increase prices On Monday Saudi Arabia hiked their crude oil prices for July, driving the price of Brent crude oil up to almost $121 per barrel. This move tightened global supplies even after OPEC+ agreed to increase its output at a faster pace in the coming months. The premium for the barrels heading to the U.S remained steady, whilst the premiums for the barrels heading for Asia and Northwest European countries were raised by Saudi Arabia. Despite OPEC+ promises to increase its output by 50% than previously planned, there are still doubts around whether or not they can meet the demand as member countries are struggling to meet the demand. The price rise and the demand and supply concerns are happening in the peak of the U.S driving season and increased demand as China comes out of its Covid-19 lockdowns, and their economy starts again. Brent Crude Oil Futures Price Chart Silver prices rise again The price of silver reached the highest in a month, this comes in the wake of increased demand for the safe-haven asset. The increased demand is being caused by continuing geopolitical tensions, inflation and persistent concerns around slowing global growth. Silver Jul ‘22 Price Chart Corn prices low Corn futures are trading at eight week lows on Monday amidst strong hopes of higher supplies thanks to hopeful USDA reports and easing trade restrictions between the major producers. With planting progress strong and expectations for exports to resume from the Ukraine, prices are dropping. In addition, Brazil and Beijing came to a conclusion regarding beginning exports from Brazil to China. Corn Dec ‘22 Futures Price Chart Sources: finance.yahoo.com, tradingeconomics.com
Analysis Of Situation Of Crude Oil Futures And WTI

Brent Crude Oil Prices At 5 Week Lows, Silver Prices Affected By Aggressive Monetary Policy, New Concerns Around Corn Supplies

Rebecca Duthie Rebecca Duthie 20.06.2022 11:50
Summary: The international oil benchmark fell around 6% on Friday. Silver fell below the $22 per-ounce mark on Friday, closing at its lowest level since June 2020. Failed negotiations between Russia and the Ukraine. Read next: Coffee Prices Rising Amidst Tight Supply Concerns, WTI Oil Facing Its First Weekly Decline Since Mid-April, Platinum Prices At 6 Week Low  Brent Crude Oil prices remain supported Brent Crude Oil prices fell to almost 5 week lows on Monday amidst concerns around slowing global economic growth and fuel demand which outweighed expectations of higher near-term consumption and ongoing supply issues. The international oil benchmark fell around 6% on Friday amidst concerns of global economic fallouts from higher interest rates shook financial markets. U.S Energy Secretary Jennifer Granholm warned markets of a “continued upward pull on demand” over the weekend, and of the likelihood of high gasoline prices continuing. Crude prices have been supported by the war in the Ukraine, civil unrest in Libya and OPEC’s failure to pump more oil. Brent Crude Oil Price Chart Silver prices close below $22 per-ounce Silver fell below the $22 per-ounce mark on Friday, closing at its lowest level since June 2020, in the wake of bets of more aggressive monetary policy tightening by central banks steered investors away from the non-yield metal. Silver Jul ‘22 Futures Price Chart Corn prices rising amidst new concerns around supply Corn prices rose to 4 week highs in mid-June amidst new concerns around grain supplies. Talks between Russia and the Ukraine, two of the largest grain exporters, around resuming Ukrainian exports failed, despite Turkish efforts to negotiate a safe corridor for the grain stuck at Black Sea ports. Meanwhile, Brazil and Beijing reached an agreement after years of negotiation to start corn exports from Brazil to China. Corn Dec ‘22 Futures Price Chart Sources: finance.yahoo.com, tradingeconomics.com

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