SLV Stock Price Today: Riding the Bull’s Golden Trail

SLV Stock Price Today: Precious Metals Stampede Down the Golden Road

Aug 31, 2024

Palladium stands out as the outlier, currently the most oversold precious metal and, as of this week, the most oversold market overall. Gold and Silver, on the other hand, are biding their time after a significant move from their lows. In September 2022, Gold was around 1600, and Silver at 17.50. The longer-term outlook remains bullish, but patience and discipline are now crucial.

On the weekly charts, Silver appears stronger than Gold, with a good chance of testing the 24-25 range before a potential pullback. However, until the monthly chart patterns strengthen, which hasn’t occurred yet, volatility is expected in both metals.

Palladium, however, could be the game-changer. When it starts moving, be prepared for something extraordinary. Its thinly traded Market makes it susceptible to manipulation by big players, unlike the Gold and Silver markets, which are more resilient. Market update February 19, 2024

It didn’t take much to drive Gold and Silver to higher levels. Gold has reached new highs almost weekly, with Silver, the “poor man’s gold,” poised to follow suit. Currently, there’s a three-way battle underway between the U.S. dollar, precious metals, and cryptocurrencies. Cryptos in bubble territory hold the key; if they falter, attention will shift to precious metals and the USD. Should the dollar fail to hold its ground, it would signal further trouble for the currency. Eventually, the clash will extend to include USD, crypto, and commodities, making for an intriguing scenario—more on that in future updates.

Silver is gearing up to test the $27 range, potentially overshooting to $29. Investors should welcome sharp pullbacks in the precious metal sector from a long-term perspective, as they will signal substantial buying opportunities amidst a bullish outlook. Gold, for the first time, has paved the way for a test of the $4500 to $5100 range. However, do not fixate solely on these targets, as the journey is bound to be volatile. Certain stocks in this sector are primed for explosive growth. As for Palladium, it presents an exceptional long-term opportunity. However, it awaits one more crucial signal before it can be categorised as the “investment of a lifetime,” a distinction that is hard to achieve.

Supply and Demand Dynamics for Silver

The silver market is experiencing a significant supply-demand imbalance, consistently outpacing supply. This shortfall is expected to persist and grow in the coming years, potentially until 2026 or beyond. Let’s examine the key factors contributing to this dynamic:

Supply Shortfall:
1. According to the Silver Institute, 2024 is projected to be the fifth consecutive year with a silver shortage.
2. 2023 the silver market experienced an over 142 million ounces deficit.
3. For 2024, the Silver Institute anticipates the supply deficit to increase dramatically to 215 million ounces, with a deficit adjusted for investments in Exchange-traded Products of 265 million ounces.

Demand Trends:
1. Industrial Demand: Industrial usage of silver has been steadily increasing, reaching record levels in 2022 and 2023.
The creation of power grids and the growing use of green technologies, including solar panels, are significant drivers of this demand.
– By 2024, almost one in five ounces of silver is expected to be dedicated to the photovoltaic industry.

2. Investment Demand: While exchange-traded products (ETPs) saw outflows in 2023, overall investment demand remains strong as investors seek safe-haven assets.

3. Regional Dynamics: Rapid industrial demand growth, particularly in China (44% increase), reshapes local supply/demand dynamics.

Supply Challenges:
1. Mine Production: Global silver mine production decreased by 1% in 2023 compared to 2022, primarily due to lower output from lead and zinc mines that produce silver as a by-product.
2. Production Costs: Silver mining companies are facing deteriorating margins and significant rises in production costs (up 25% by 2023).
3. Regional Variations: While Latin American countries like Mexico and Peru are expected to increase production, declining supply from Kazakhstan, Russia, and Australia may offset some of these gains.

Future Outlook:
1. The supply deficit is projected to widen in the coming years. Metals Focus forecasts that this imbalance is not a short-term phenomenon but a structural issue likely to endure.
2. The photovoltaic industry’s growth could play a significant role in maintaining strong demand for silver.
3. Due to increasing industrial demand, the shortfall is expected to nearly double to 265 million ounces by the end of 2024.

This persistent and growing supply-demand imbalance could strongly affect silver prices, potentially driving them higher in the coming years. As the market adjusts to these dynamics, investors should closely monitor supply trends and demand indicators for potential price movements. However, it’s important to note that while these factors suggest upward pressure on prices, other economic factors such as global economic health, currency fluctuations, and investor sentiment also play crucial roles in determining silver’s market price.

Silver as a Long-Term Investment

Silver has historically proven an excellent long-term investment, especially when purchased during oversold periods. For example:

1. In 2008, silver dropped to around $9 per ounce but rebounded to nearly $50 by 2011.
2. After the 2013 crash, silver bottomed out at about $14 in 2015 before climbing back to $29 in 2020.

Currently, silver is trading in what many consider oversold territory, particularly when compared to gold. The gold-to-silver ratio, a key metric for precious metals investors, remains historically high at around 80:1, suggesting that silver may be undervalued relative to gold.

Silver could offer significant long-term value for patient investors due to its industrial applications, monetary properties, and potential for price appreciation. However, as with any investment, it’s crucial to consider your risk tolerance and overall portfolio strategy before making decisions.

From this juncture onward, let’s delve into the outlook through a historical lens, recognizing that failure to learn from history often leads to its repetition.

US Dollar Gaining Traction

The dollar has just rallied to a new 11-month high and will soon set a new 52-week high; in contrast, Gold has refused to trade below its Feb 5 low of 1045. In February 2010, the Dollar was trading much lower, and so by logic, Gold should have quickly dipped below its Feb 2010 lows. Instead, we find Gold is just a hop and skip away from testing its old highs.

Gold has now reached new highs in all major currencies. Palladium was the strongest of the bunch, which set a series of new highs in the face of a rising dollar. These extreme divergences indicate that the precious metals market is sensing another crisis in the not-too-distant future; our guess would be another currency crisis.

Physical bullion is the best hedge against a currency crisis and an inflationary environment. ETF players can purchase SLV, GLD, CUT, GDX, PALL, etc. Please don’t focus on SLV Stock Price Today; focus on its long-term trend. The best time to invest is to buy when the masses are nervous and vice versa.

SLV Stock Price Today Update

A monthly close above 15.50 should lead to a test of the 18.00 to 21 ranges, with a strong chance of overshooting to the 24.00 range. Those looking for more leverage could invest in leveraged ETFs such as USLV and AGQ.

SLV Stock Price Update June 23, 2020

Looking at the yearly chart (each bar represents one month’s worth of data), one can see that SLV is still trading in the extremely oversold ranges. Moreover, it trades in an extensive channel formation, and once it breaks out of this channel formation, its upward movement will be explosive. A monthly close above 18.00 should lead to a test of the 24.00 to 25.50 ranges with a possible overshoot to the 29 to 30.00 ranges. When 24.00 is tested, we will re-evaluate the outlook and determine if SLV can take out its old highs.

Gold and silver updated Aug 2020

Notice that the weekly charts’ dollar trades in highly oversold ranges, so a relief rally is due. The dollar is still consolidating on the monthly charts, so this rally will likely fail and could result in a test of the 90 range. In the long term, the dollar will dominate, and here’s the level 4 reason: AI is going to become such a powerful commodity, and as the US controls most of the Top AI players, the US economy and the stock market could expand so much so, that its current debt could/will appear insignificant. The US has two massive advantages: the world’s reserve currency and almost total domination in AI and AI-related technologies. There is a third advantage: it has the world’s strongest military.

Gold ended the month decisively above its old all-time highs. Gold is now in a new bull market. Before you jump in joy, understand that this does not imply that Gold will skyrocket from these levels. Gold will likely test the 1990 to 2100 ranges before experiencing a reasonably sharp pullback. This pullback should be embraced if you are a Gold Bug or hard money fan. Market Update July 31, 2020

For those asking us to issue targets for Gold, we did so in the last update, and Gold has traded within the stated range; it could trade to the 2100 ranges and maybe overshoot a bit more, but it’s probably getting ready to let out some steam. Gold and most of the precious metals sector are now in a new bull market, so sharp pullbacks should be embraced. Hence, if you have a significant position in Gold, banking some profits over the next few days to a few weeks might not be a bad idea. Silver is still not in a new bull market; it will only enter a new one when it takes out its old highs. As it has to play catch up, we suspect that the next leg up will lead to a fast and furious move.