Benefiting from gold’s resurgence to start 2017, the iShares Silver Trust (NYSEArca: SLV) and ETFS Physical Silver Shares (NYSEArca: SIVR) are also climbing higher. Now, silver faces some important technical levels that if eclipsed, could result in significant upside.
Looking ahead, the ongoing negative interest rate environment, with European and Japanese central banks cutting benchmark rates deeper into the red to promote growth, could push investors toward precious metals as a more stable store of wealth.
Moreover, unlike gold, silver sees much higher industrial demand. The precious metal enjoys heavy industrial demand that benefits from an expanding global economy.
“Silver prices continue to work their way higher, now well above the neckline of the inverse H&S currently in play, above the July trend-line; contending with the 200-day MA for the past couple of sessions. If the move up is to continue, then this widely-watched moving average shouldn’t present much of a problem for much longer,” reports DailyFX.
Another fundamental catalyst for silver is increasing solar demand. The quickly expanding photovoltaic panel or solar industry could continue to drive silver demand. Installations and investment in solar panels, which incorporate silver for its electrical conductivity, are at record levels, reports Henry Sanderson for the Financial Times.