Reddit’s Wall Street Silver is quite an interesting place to be right now.
On a short-term basis, silver has been discovered and re-discovered by a wide range of investors, sell-side marketing groups, and buy-side retail and institutional investors. Some fund managers and investors are liquidating their short to intermediate-term gold positions and buying silver instead, assuming gold may take a breather in its upward march while silver will play catch up. This is applying upward pressure on short-term silver prices just as other investors, including the Wall Street Silver Army, are going long silver. The internet is full of people waving their arms saying that silver prices are going to unprecedented highs.
The silver prices will rise in the short term. Prices may rise well above $30. Longer-term, it is expected silver prices to rise to record levels at some point in the next 3 to 10 years. Part of the current bullishness is based on expectations of stronger fabrication demand from the electronics and solar panel industries.
The silver production, which accounts for roughly a third of the total silver mine supply, is likely to shrink in the near future with reduced capital expenditure in this sector limiting new capacity coming on-stream. That combined with positive investor sentiment is likely to apply upward pressure on the Silver price. The accumulation of Silver inventories by investors is expected to be the most bullish factor supporting silver prices.
Technically there is an ascending triangle in silver. A break above $28 would have such a technical price chart pattern signaling a sharp upward spike in silver, to $30.40, $32, $33, or even $35.
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