In the event of a financial crisis, silver could potentially see significant gains, as it almost hit $50 during the last crisis.
- The silver market has seen significant bullish momentum during Thursday’s trading session, with the precious metal shooting straight up in the air.
- A lot of money is flowing into precious metals as investors seek a haven for their investments, and the weakness in the US dollar during the session has only helped to increase demand for silver.
- While gold is often seen as the top choice for a haven, silver is also a popular choice, given its lower price point and its reputation as the “second fiddle” to gold.
It’s worth noting, however, that the silver market is highly sensitive to industrial demand, which can have a significant influence on the market. This means that the market is likely to see a lot of noise, even as demand for silver as a haven continues to increase. Investors should be prepared for a potential pullback, which could provide an opportunity to buy in at a lower price.
The $26 level has been a major resistance level for silver in the past and breaking above it would likely trigger a buying frenzy. However, the market may have gotten here too quickly, so it’s possible that we will see a lot of noise and choppiness in the market in the near term. The upward momentum for silver remains strong, and pullbacks should be seen as potential buying opportunities. Even if industrial demand for silver were to slump, the weakness in the US dollar is likely to continue pushing the market higher, as silver is highly sensitive to movements in the US Dollar Index.
The $25 level is likely to provide significant support for silver, both from a structural and psychological standpoint. While the market may be overbought at this point, there is no reason to consider shorting silver, given the strength of the bullish momentum. Instead, investors should be looking for value in the market and taking advantage of potential buying opportunities on pullbacks.
In the event of a financial crisis, silver could potentially see significant gains, as it almost hit $50 during the last crisis. However, investors should be cautious about chasing the trade all the way up at its current level. Instead, a more measured approach to buying into the market may be advisable, with investors looking for opportunities to buy in at lower levels.
Overall, while the silver market is likely to see significant noise and volatility in the near term, the underlying bullish momentum remains strong. With demand for haven investments on the rise, silver is likely to continue to see increased demand, despite potential fluctuations in industrial demand. Investors should be prepared for potential pullbacks, which could provide opportunities to buy in at lower prices and take advantage of the market’s long-term potential.
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