Baxia Markets
April 19, 2023

Silver rises as investors seek protection

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Investors see Silver as protector of their wealth

Silver markets have been on the rise recently as investors seek refuge in precious metals to protect their wealth. With the US dollar getting weaker and weaker, traders are increasingly looking towards gold and silver as a safe haven for their investments.


Although silver is considered to be "second fiddle" to gold, it has been gaining more attention lately due to its potential as a valuable asset. However, it's worth noting that the silver market is highly sensitive to industrial demand, which means it can be significantly influenced by changes in the global economy.

Silver market

Despite this, the market is expected to continue experiencing upward momentum due to the weakening US dollar. However, it's important to keep in mind that the market may experience pullbacks, which can provide buying opportunities for investors.


Historically, the $26 level has been a significant resistance level for silver, but breaking above it could trigger a buying frenzy. Nevertheless, given how quickly the market has risen recently, investors should expect a lot of noise in the market, with significant movement expected only after a pullback.


Investors are advised to consider pullbacks as potential buying opportunities. The $25 level is expected to provide significant support, both structurally and psychologically.


Silver market can reach record levels with inflation

Despite the market is overbought, there is no interest in shorting silver, as it is considered a valuable asset in times of financial crisis. During the last financial crisis, silver almost hit $50, and investors see it as an excellent hedge against inflation and other economic uncertainties.


However, investors are cautioned not to chase the trade all the way up to current levels, as the market is volatile and may experience significant fluctuations in price. Instead, investors should look at silver as part of a diversified investment portfolio and consider its potential as a valuable asset in the long term.


Ultimately, silver markets have been experiencing significant upward momentum due to investors seeking refuge in precious metals amidst a weak US dollar. While the market is expected to continue experiencing significant noise and volatility, investors should consider pullbacks as potential buying opportunities and see silver as a valuable asset in times of financial crisis.


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Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. 


Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit

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