Silver Price Outlook – Silver Looking for Value

NEW YORK (September 30) Silver has fallen a bit during the early hours here on Tuesday, which makes quite a bit of sense as we have gotten a little overextended in this market. Ultimately, it does look like any pullback will probably end up being a buying opportunity. And I certainly would not want to short silver at this point. There is a lot of demand and quite frankly, supply struggles to keep up every year. So, as green technology demands more silver, it makes a lot of sense that silver rises. But this is beyond that. There is the fact that people are concerned about central banks and of course, a slew of interest rate cuts could help as well.

A shrinking US dollar has helped recently, but quite frankly, when you look at the chart of the silver market, this happened long before the US dollar really started to fall apart. This has been going on for years. And in fact, you can even make an argument that the US dollar is fighting back, and silver still looks really good. So, I think any pullback to this point in time attracts a lot of attention. Maybe the $45 level will be tested, possibly even the $44 level.

Any fall from here, I think, opens up value hunting. So, what I’m looking for is a bounce after a fall to get onto the right side of the V in order to take advantage of what has been a very strong trend. At this point, I suspect most traders are eyeballing the $50 level, which doesn’t sound that far from here, but it is about 10%, maybe a little bit more. So, it’ll take some work to get to that level.

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