Signs Of Life For The Price Of Silver

Thursday, October 27, 2016

fine silver

Anyone who read last week’s forecast of the price of silver knows that the precious metal has seen a lot of uncertainty after beginning the year on a particularly strong note. But are there signs of life for the precious metal once again…And if so, how significant will they be? Let’s look at the recent moves in the silver price to make sense of where we stand.

TheHindu.com Notes A “Festive Mood” For Silver

The Hindu, a daily newspaper of India and across the world since 1889, points to a “Festive mood” that has some believing an increase in silver demand could send prices up. In India, the festive and wedding season typically means a greater demand for jewelry, particularly given the country’s population.

Unfortunately, this demand may not be more than a blip on the radar for international forecasters, who know that silver demand alone is only one element of the price of silver—let alone a festive mood in one country, albeit a country as large as India. But it’s certainly something to take into account for anyone who’s interested in seeing where silver demand comes from at times like these.

EconomicCalendar.com Watches Dollars And Stocks “Slip”

More importantly for those of us in the US, the dollar and stocks slipped and gave some life to the price of silver early today. The move isn’t particularly large this morning, but it does show those “signs of life” we’re looking for.

GDP figures tomorrow could play into the price of both gold and silver, since economic news of the sort tends to give stocks a reason to bounce or to fade. Fading or bouncing stocks, of course, can in turn affect the price of silver and gold, which is why tomorrow and beyond will be so important in understanding the future of these precious metals.

DailyFX.com Sees Potential In Silver

DailyFX takes a sophisticated approach to silver, noting how it’s doing well against currencies the world over. These complicated relationships can make for very difficult forecasting. But in this case, the price of silver’s reluctance to go far below $17 and above $18 has found a few reasons, including:

  • An up-and-down U.S. dollar, which stopped a decline on 10/6 by rising 2% since then
  • Silver has shown lots of resistance at about the $18 mark, for whatever reason
  • DailyFX is waiting on a “break” to show where silver will head next, which means silver may currently be in a holding pattern

The Silver Price Right Now

Silver has gone up about a penny at the writing of this article, while gold is up some $3. That isn’t much movement, but given platinum’s rise, it’s clear that silver’s current price is affected by other precious metal factors. Although palladium is down, the other three main precious metals are up on the day while the market waits to hear what happened with GDP.

Predictions are hard to come by at this time, with so many waiting on news and for “breaks” in the silver price. But for now, the price of silver certainly doesn’t seem primed for a downward spiral.

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Darren Capriotti

Darren Capriotti has been a market analyst for the past decade and is an expert in precious metals. He prides himself on his ability to analyze the market and offer true value to investors with questions about gold, silver, and other precious metals. Highly educated, incredibly passionate, and more accurate than most, Darren offers a true, unbiased look into what investors can expect in the precious metals market. You can reach Darren at dcapriotti@gold-eagle.com.