Is Silver going to be a Great Investment- $50 Target?

Contributed By: The Big Fat Whale

In this article, we are covering the merits of investing in Silver. Will it be a great investment going forward? And will it revisit its peak of $50 established in April 2011?

We touched on Silver as one of the first few articles on this website in March 2021. After the article, it has been range bound between $18-$25. In recent times the price action looks great for a potential breakthrough of their key resistance at $30,

Hence, we decided to revisit our thesis and see if everything still firmed up nicely.

 

Technical Analysis of Silver

Source: TradingView

The peak of Silver at close to $50 was established during the Hunt Brothers' short squeeze in 1980 and 2011. The price of silver is still far off the peak and Gold has already broken its all-time high- trading at around $2400 now.

Source: TradingView

Zooming in on the charts, this is the fourth time that SIlver has tested the $30 mark since 2020. We could see volume has been higher over the past year as compared to the other periods. This could be a sign of accumulation.

So realistically, if there is a convincing break above $30, Silver at $50 as a target over the medium term would not be far-fetched.

We will be looking at the fundamental aspects to see if it could support such a move.

Click Here for the Full Article:

https://thebigfatwhale.com/is-silver-going-to-be-a-great-investment-50-target/

 

Silver To The Moon?

Contributed by: The Big Fat Whale

We have taken inspiration for my title to this post from the now trending Reddit community; where the short squeeze of GameStop was brilliantly done from the #wallstreetbets Reddit crowd. They also have a #wallstreetsilver Reddit forum which could be the next to go on a trending mode as a short squeeze was on the way recently but it halted at the critical 30 dollars level. 

This post will be touching more on the fundamentals of silver rather than just pure speculation and hoping for a parabolic surge based on a short squeeze. A comparison of a short squeeze on SLV (the largest silver ETF) as compared to GameStop seems not logical: SLV short interest is just around 8% versus over 100% when Reddit traders were squeezing the hell out of the short-sellers.

What is the attractiveness of silver as an investment then? The simple answer to this question will be supply and demand. Currently, the supply and demand numbers are at around 1 billion ounces per year and so there is not much excess supply to go around.

Industrial Use

Silver demand as compared to Gold is multi-faceted: there are lots of uses for silver in the industrial space and gold is mainly used as a store of value. More than half of the 1 billion ounces per year are set aside for industrial use. Silver is used in many sunrise sectors such as solar, electric vehicles, medical, dentistry and others. The demand for industrial use would only accelerate in the future based on the uprising sectors such as solar and electrical vehicles.

Half of the remaining supply (250 ounces) would be used for investment purposes such as ETFs and physical silver. The other half will be for jewellery and silverware.

 

Here is the link to the full article:

https://thebigfatwhale.com/silver-to-the-moon/