Like its peers in gold, silver also enjoys a reputation as a safe haven asset. In addition, during periods of economic expansion, silver will also benefit from its increased use in industrial applications ranging from chip manufacturing to solar panel production. At the same time, silver, like other precious metals, is still supported by limited supply. At present, the annual use of silver still exceeds the mining output. Therefore, although the situation in the Middle East remains tense and inflation remains high, the economy still maintains astonishing resilience, and it is not surprising that investors continue to pursue silver prices. Heraeus analyst said in an interview, "Silver seems to benefit from two major sectors: investment/consumption and industrial demand, each accounting for 50% of total silver demand." From the gold/silver ratio that represents the price relationship between the two metals, silver is also highly attractive. Currently, one ounce of gold can purchase approximately 83 ounces of silver for investors, while the average ratio over the past 30 years is around 67 ounces.
As a well-known chart form, the "golden cross" signal usually appears before a new upward trend begins. The rise of silver this time is also consistent with this. After the 50 day moving average crossed the 200 day moving average and formed a golden cross signal, silver prices rose significantly in the 11 month trading range.
In the future correction process, investors should pay attention to the price of $26, which may find buying interest near the top trend line of the range. This trend line has shifted from the previous resistance zone to a support zone. To determine the upward target, investors can measure the distance between the up and down trend lines in the US dollar range and add this distance to the breakout point. For example, adding $3.75 on top of $26 indicates a potential profit area of around $29.75.
So now the prices of silver
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