By: DailyForex.com

Silver markets had a positive session on Thursday, slicing through the $19.50 level. This is significant in my opinion, because we are also closing above the 50 day exponential moving average. As you can see on the chart, this moving average has been pretty reliable as far as resistance is concerned on the way back down from the highs in March. With that, I believe that the market will ultimately continue to go higher at this point in time, and trying to reach the $20.00 level. It is there where I would expect to see a significant amount of downward pressure though, and no matter what happens between now and the move, I would expect it to be choppy in this market.

The silver market has certainly been beaten down, but as a result I think there’s a bit of a value play to be had. Break above the highs from the session on Thursday, I believe that the buyers will step in and continue to push this market up.

I also believe that we are continuing to form some type of basing pattern.

I also believe that we are continuing to form some type of basing pattern, albeit in a very sloppy manner. This market should continue to bang around in this general vicinity, and I believe that pullbacks will continue to bring in buyers. After all, there is still a massive amount of quantitative easing out there, even though we have tapered off significantly. That should bode well for precious metals over time, if inflation can ever pick up which is something that we are still waiting on.

I ultimately believe that this market will go much higher given enough time, but it comes down to what your time horizon is. For me, I actually prefer to buy physical silver and just sit on it for years at this point. Ultimately, I believe that the silver market will go back to the $50 level, but that of course is going to take a massive amount of momentum in a significant amount of time. I think of this more as an investment and less of a trade.

Silver 61314

Related Articles
  1. Mutual Funds & ETFs

    ETF Analysis: PowerShares FTSE RAFI Emerging Mkts

    Learn more about the PowerShares FTSE RAFI Emerging Markets ETF, a fundamentally weighted fund that tracks emerging market equities.
  2. Mutual Funds & ETFs

    ETF Analysis: iShares Cali AMT-Free Muni Bond

    Learn more about the iShares California AMT-Free Municipal Bond exchange-traded fund, a popular tax-advantaged ETF that dominates its category.
  3. Retirement

    Infographic: How Much Money Do You Need to Retire in Hawaii?

    In this infographic we break down cost of living in Honolulu, Hawaii in terms of taxes, rent, food and other expenses and offer comparison to the cost of living in New York, Los Angeles, San ...
  4. Fundamental Analysis

    10 Major Companies Tied to the Apple Supply Chain

    Apple has one of the best supply-chain models. Here are some of the top businesses involved, and the benefits and challenges for all.
  5. Mutual Funds & ETFs

    ETF Analysis: SPDR S&P Emerging Markets Dividend

    Learn more about the SDPR S&P Emerging Markets Dividend Fund, a yield-focused exchange-traded fund tracking global emerging economies.
  6. Mutual Funds & ETFs

    ETF Analysis: First Trust Dow Jones Global Sel Div

    Find out about the First Trust Dow Jones Global Select Dividend Index Fund, and learn detailed information about characteristics and suitability of the fund.
  7. Term

    Why You Should Consider Investing In the Tech Industry

    The technology industry offers huge investment opportunities.
  8. Mutual Funds & ETFs

    ETF Analysis: U.S 12 Month Natural Gas

    Learn about the United States 12 Month Natural Gas Fund, an exchange-traded fund that invests in 12-month futures contracts for natural gas.
  9. Mutual Funds & ETFs

    ETF Analysis: iShares Floating Rate Bond

    Explore detailed analysis and information of the iShares Floating Rate Bond ETF, and learn how to use this ETF as a defense against rising interest rates.
  10. Investing News

    Netflix Stock Tumbling

    Shares of Netflix, the popular video streaming service provider, plunged by roughly 13% in the week starting August 31, 2015 amid rising competition in the video streaming industry.
RELATED TERMS
  1. Sticky Wage Theory

    An economic hypothesis theorizing that pay of employees tends ...
  2. Cost Of Funds

    The interest rate paid by financial institutions for the funds ...
  3. Earnings Before Interest & Tax ...

    An indicator of a company's profitability, calculated as revenue ...
  4. Implied Volatility - IV

    The estimated volatility of a security's price.
  5. Plain Vanilla

    The most basic or standard version of a financial instrument, ...
  6. Operating Cost

    Expenses associated with the maintenance and administration of ...
RELATED FAQS
  1. Can mutual funds outperform savings accounts?

    A mutual fund can – and should – outperform a savings account. In most cases, it should not even be a close race. Savings ... Read Full Answer >>
  2. Can mutual funds invest in private companies?

    Mutual funds can invest in private companies, which may come as a surprise to many investors. It is rare for a fund to have ... Read Full Answer >>
  3. How do dividends affect retained earnings?

    When a company issues a cash dividend to its shareholders, the retained earnings listed on the balance sheet are reduced ... Read Full Answer >>
  4. Can my IRA be garnished for child support?

    Though some states protect IRA savings from garnishment of any kind, most states lift this exemption in cases where the account ... Read Full Answer >>
  5. Why is my 401(k) not FDIC-Insured?

    401(k) plans are not FDIC-insured because they are typically composed of investments rather than deposits. The Federal Deposit ... Read Full Answer >>
  6. Can I use my IRA savings to start my own savings?

    While there is no legal reason why you cannot withdraw funds from your IRA to start a traditional savings account, it is ... Read Full Answer >>

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!