Silver markets have dipped on Monday after gapping higher but have turned around to find buyers yet again. Ultimately this is a market that looks very bullish.
Silver markets have gapped higher to kick off the trading session on Monday but found buyers underneath as soon as the gap was filled. Ultimately, we then shot above the $27.50 level early in the open outcry session, showing that there are still plenty of buyers out there, and that we are likely to go much higher, with an emphasis on the $28 level been resistance.
If we can break above, there then I think we will go looking towards $30 yet again. That of course is a large, round, psychologically significant figure but I do think that it is only a matter of time before we break above there. Ultimately, this is a market that I think continues to see a lot of interest, due to the fact that the Federal Reserve is doing everything it can to flood the markets with US dollars.
As central banks around the world are copying the same playbook, it is obvious that fiat currencies will take a bit of a hit as people look to buy “things.” Hard assets tend to be one of the first thing that they pick up, it is over of course has a lot of catching up to do when it comes to the usual gold/silver ratio. Historically speaking, silver is extraordinarily cheap, and should go much higher. Having said that though, silver also has an industrial component that keeps it somewhat cheap due to the fact that one would have to wonder whether there will be significant demand. At this point in time though, buying the dips seems to be the best way forward.
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