Fundamental Pressures and Technical Boundaries
If we get over the 50-week EMA at $64.20, then maybe we have a little bit of a move to the upside, maybe $70 waiting to happen, but as things stand right now from a fundamental standpoint, it makes no sense to put money in a non-yielding asset if you can get elevated rates out of a bond, for example. It’s a risk-free trade or as close to risk-free as it gets.
That being said, in the longer term, I do think that the demand for silver will be part of the story again, but we have to get past the inflation concerns. After all, rates are rising because of inflation, and although some people would expect that to drive the price of silver up, it’s a different type of inflation. It’s not a massive demand; it’s a supply-side problem, not in silver as much as everything. We’re still worried about that stagflation-type issue.