The current developments in the silver market show remarkable potential for a significant price escalation, which especially private investors, savers, and retail investors should closely monitor.
Market Situation and Trend Analysis
Technical Analysis
- Trend Structure: The silver price has been in an intact upward trend for some time. Despite short-term setbacks, the mid-term rising trend was recently confirmed. After a brief slip, silver was able to leave the downward trend and now has room for upward movement.
- Resistances: An important resistance lies at 35 US dollars per ounce. Should this level be broken, analysts see the potential for a rally up to 40 or even 50 US dollars.
- Sideways Movement: Despite a strong gold market, silver is currently stuck in a narrow sideways range between about 32 and 33 US dollars, interpreted as a deceptive calm before the storm.
Fundamental Factors
- Deficit Situation: The supply situation for silver is tense; there is a structural deficit in the market.
- Gold-Silver Ratio: The gold-silver ratio currently stands just below 100 – historically, this is a very high value. This means: Compared to gold, silver is currently undervalued and offers great potential for catch-up from a fundamental perspective.
- Demand: Industrial applications (e.g. electronics, photovoltaics) as well as investment demand remain high.
Forecasts and Possible Price Developments
Short-Term
- Weekly Range: For the coming week, a range between about 32.60 to 34.20 US dollars is expected; alternatively, a range between 31.80 to 33.10 US dollars is possible.
- Breakout Potential: As soon as the resistance around 35 US dollars falls, the price could accelerate significantly.
Mid-Term
- Continuation of the Trend Likely: As long as the current upward trend structure holds – with supports in the range of about 20 to 30 dollars – the mid-term price target remains positive.
- Potential Rally Targets: Analysts see a target of initially 40–50 US dollars per ounce as realistic after a breakout above the resistance at 35 dollars.
Long-Term
- Price Range Until Decade’s End (2034): Taking volatility into account, the price could rise long-term to values between 27 and 70 dollars – depending on market dynamics and global economic factors.
Importance for Private Investors
This presents an interesting opportunity for private investors:
- Entry Potentials are Attractive, as silver is still relatively cheap compared to gold.
- The combination of technical trend confirmation and fundamental deficit speaks for further price potential. Risks always exist due to short-term volatility or unforeseen macroeconomic events.
Summary
The current status of the silver price suggests an impending rally: Technical signals are positive; fundamental factors such as supply deficits and the high gold-silver ratio also indicate further increases. A breakthrough above the resistance at around 35 dollars could clear the way for a rapid price increase towards 40–50 US dollars per ounce – with long-term perspectives even beyond that.