SILVER is losing to USD and economic recovery
Updated
Well, SILVER is not going to moon like the redditors and individual retail investors wanted it to. First, we had the fake break-out at $30, which immediately failed. Bulls attempted two recoveries when SILVER fell below $27 briefly, yet each time, the metal failed to maintain $28 as its base camp for the summit to $30 once again. Without clinging onto $30 (let alone $28) in the current economic environment we face, it will not hit anywhere close to the arbitrarily-declared value of $50, like everyone wants it to. The Fed has printed literally trillions of dollars over the last 365+ days and yet the USD's index stubbornly remains at ~$90, now making its slow but steady climb back up from the pits. Will stimulus drive industrial demand? No. Manufacturing demand will not return in earnest until 2022. Will the investment side drive demand for SILVER and raise its price? No. As the dollar strengthens every day, as more and more Covid vaccines get into people's arms, institutional investors return to paper assets and yields. Sitting back and collecting yield is much easier and conventional than moving safe-haven/hard assets. GOLD continues to slide, and silver always, always follows. I am a silver stacker. I love silver. I buy it every week. But it ain't "mooning" this year, ladies and gentlemen.
Comment
Despite the dollar's index meeting resistance at $91 and now finding likely support at the 90.50 level, SILVER continues its long slide as it slowly loses momentum. The bears are now battling $27 to potentially find support at the $26.70-$26.80 range. The GOLD/SILVER ratio also found support at 64.80 and rebounded back above 65.50. If the dollar can fight back to $90.90 and up, and/or if gold continues its slide below $1775-$1780, it will be bearish for SILVER.
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