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Market News Inflation concerns push gold and silver to rise again, and silver demand exceeds 1 billion for the first time in 6 years
Inflation concerns push gold and silver to rise again, and silver demand exceeds 1 billion for the first time in 6 years
In the early Asian market on November 18, gold and silver continued to rise slightly from the previous trading day. On Wednesday, gold and silver prices rebounded after hitting this week's low. Bulls entered the market and bought, which is a sign of market strength. According to the latest report of the Silver Association, the global silver market demand will reach 1.29 billion ounces this year, which is the first time it has exceeded 1 billion ounces since 2015.
2021-11-18
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In early Asian market on Thursday (November 18), gold and silver continued their gains from the previous trading day and rose slightly. On Wednesday, gold and silver prices rebounded after hitting this week's low. The bulls entered the market and bought. This is a strong market. Signs. At present, gold and silver, as tools to hedge against inflation, are still the main bullish factors in the market.
Data on Wednesday showed that the Eurozone Consumer Price Index (CPI) rose 0.8% in October compared to September and 4.1% year-on-year. At the same time, the UK's October consumer price index rose 4.2% from the same period last year, the largest increase in 10 years. These data are twice the data that the European Central Bank and the Bank of England hope to see. More and more "overheated" economic data like this will only confirm inflation again, and even problematic inflation may continue for some time.
According to the latest report of the Silver Association, the global silver market demand will reach 1.29 billion ounces this year, which is the first time it has exceeded 1 billion ounces since 2015. On Wednesday, the Silver Association stated in its mid-term market report that in 2021, silver demand is expected to see widespread growth, with industrial demand bearing the brunt.
The latest research by the Silver Research Institute shows: "The recovery of silver industry demand caused by the epidemic will bring this part of silver demand to a new high of 524 million ounces. In some key areas, photovoltaic demand is expected to increase by 13% to more than 110 million ounces . A new high highlights the key role of silver in the green economy.” The report also pointed out that investment demand is strong, and interest in physical silver is expected to increase by 34%, or 64 million ounces, to 263 million ounces, a record six years ago. new highs.
The growth of silver started with a buying frenzy on social media and then spread to more traditional silver investors. Indian demand reflects improved confidence in silver prices and economic recovery. Overall, after the plunge in physical investment in India in 2020, it is expected to soar nearly three times this year. "
It is expected that the investment demand for silver will also increase in 2021. Silver-backed exchange-traded fund holdings are expected to increase by 150 million ounces. Analysts said: " From 2021 to November 10, silver holdings increased by 83 million ounces , bringing the global total to 1.15 billion ounces, which is close to the 1.21 billion ounces at the height of the social media storm on February 2. Record high."
According to the report, the silver jewellery and silverware manufacturing industries are expected to partially recover from the downturn in 2020, increasing by 18% and 25% respectively. Analysts said: “Both markets will benefit from a significant improvement in all key countries, especially India, because the economy and consumer confidence rebound faster than expected, and during the crucial wedding and holiday periods, restrictive measures End in time."
On the supply side, Metals Focus said mine production is expected to increase by 6% to 829 million ounces. Analysts said: “This recovery is largely due to the fact that most coal mines were able to produce at full speed throughout the year after they were forced to stop production due to the epidemic in 2020. Those countries where production was most affected last year, such as Peru , Mexico and Bolivia will have the greatest growth."
From the perspective of market supply and demand fundamentals, Metals Focus expects a shortfall of 7 million ounces in silver supply. The report said: "This will be the first deficit since 2015. " While the demand outlook is optimistic, silver prices have seen a new upward trend. The December silver price was last traded at US$25.215 per ounce, an increase of 1% on the day. Analysts pointed out that after the consumer price index rose to its highest level in 31 years, precious metals have seen a new upward trend.
Phillip Baker, CEO of Hecla Mining, expects silver prices to maintain a strong upward trend as investors are looking for an inflation hedge. He said: "Now, we see the consequences of trying to ease our economic system and avoid the crisis. The result is an increase in inflation, which does not seem to be very short-lived. It is expected that silver demand will continue to grow, and the market size may reach 2 billion ounces in the next 30 years. ."
Baker said: "There is no doubt that with people's desire for clean energy, silver demand will continue to grow, and the growth rate may be much faster than we have seen in the past. With these demands, silver is more expensive." Baker said that from a demand growth perspective, the world needs seven to ten new mines, the size of which is equivalent to Green Creek in southeastern Alaska. It is predicted that the mine will produce about 10 million ounces of silver this year. It is one of the largest producers of primary silver in the world.
From a technical perspective, the December gold futures bulls have a solid overall near-term technical advantage. On the daily bar chart, prices are in a six-week uptrend. The next upside target for the bulls is to close above the solid resistance at 1900.00. The next short-term goal for the bears is to push the futures price below the technical support of $1,800. The first resistance is at this week's high of $1,879.50, and then at $1885.00. The first support level is this week's low of $1851.00 and then $1839.00. Wyckoff’s market rating: 7.0.
(Spot gold daily chart)
GMT+8 At 8:22 on November 18, spot gold was quoted at US$1,688.80 per ounce.
In the six-week uptrend on the daily bar chart, the December silver futures bulls have the overall short-term technical advantage. The next upside target for the silver bulls is to close above the stable technical resistance of $26.13 per ounce. The next downside target for the bears is to close below the support of the November low of $23.045. The first resistance level is this week's highest at $25.49, and then at $25.75. The next level of support is seen at this week's low of $24.825, and then at $24.50. Wyckoff’s market rating: 6.0.
(Spot silver daily chart)
GMT+8 At 8:42 on November 18th, spot silver was quoted at $25.11 per ounce.
Data on Wednesday showed that the Eurozone Consumer Price Index (CPI) rose 0.8% in October compared to September and 4.1% year-on-year. At the same time, the UK's October consumer price index rose 4.2% from the same period last year, the largest increase in 10 years. These data are twice the data that the European Central Bank and the Bank of England hope to see. More and more "overheated" economic data like this will only confirm inflation again, and even problematic inflation may continue for some time.
Silver demand is expected to exceed 1 billion ounces in 2021, a record high in 6 years
According to the latest report of the Silver Association, the global silver market demand will reach 1.29 billion ounces this year, which is the first time it has exceeded 1 billion ounces since 2015. On Wednesday, the Silver Association stated in its mid-term market report that in 2021, silver demand is expected to see widespread growth, with industrial demand bearing the brunt.
The latest research by the Silver Research Institute shows: "The recovery of silver industry demand caused by the epidemic will bring this part of silver demand to a new high of 524 million ounces. In some key areas, photovoltaic demand is expected to increase by 13% to more than 110 million ounces . A new high highlights the key role of silver in the green economy.” The report also pointed out that investment demand is strong, and interest in physical silver is expected to increase by 34%, or 64 million ounces, to 263 million ounces, a record six years ago. new highs.
The growth of silver started with a buying frenzy on social media and then spread to more traditional silver investors. Indian demand reflects improved confidence in silver prices and economic recovery. Overall, after the plunge in physical investment in India in 2020, it is expected to soar nearly three times this year. "
It is expected that the investment demand for silver will also increase in 2021. Silver-backed exchange-traded fund holdings are expected to increase by 150 million ounces. Analysts said: " From 2021 to November 10, silver holdings increased by 83 million ounces , bringing the global total to 1.15 billion ounces, which is close to the 1.21 billion ounces at the height of the social media storm on February 2. Record high."
According to the report, the silver jewellery and silverware manufacturing industries are expected to partially recover from the downturn in 2020, increasing by 18% and 25% respectively. Analysts said: “Both markets will benefit from a significant improvement in all key countries, especially India, because the economy and consumer confidence rebound faster than expected, and during the crucial wedding and holiday periods, restrictive measures End in time."
There will be a gap in silver supply, and silver prices are expected to remain strong
On the supply side, Metals Focus said mine production is expected to increase by 6% to 829 million ounces. Analysts said: “This recovery is largely due to the fact that most coal mines were able to produce at full speed throughout the year after they were forced to stop production due to the epidemic in 2020. Those countries where production was most affected last year, such as Peru , Mexico and Bolivia will have the greatest growth."
From the perspective of market supply and demand fundamentals, Metals Focus expects a shortfall of 7 million ounces in silver supply. The report said: "This will be the first deficit since 2015. " While the demand outlook is optimistic, silver prices have seen a new upward trend. The December silver price was last traded at US$25.215 per ounce, an increase of 1% on the day. Analysts pointed out that after the consumer price index rose to its highest level in 31 years, precious metals have seen a new upward trend.
Phillip Baker, CEO of Hecla Mining, expects silver prices to maintain a strong upward trend as investors are looking for an inflation hedge. He said: "Now, we see the consequences of trying to ease our economic system and avoid the crisis. The result is an increase in inflation, which does not seem to be very short-lived. It is expected that silver demand will continue to grow, and the market size may reach 2 billion ounces in the next 30 years. ."
Baker said: "There is no doubt that with people's desire for clean energy, silver demand will continue to grow, and the growth rate may be much faster than we have seen in the past. With these demands, silver is more expensive." Baker said that from a demand growth perspective, the world needs seven to ten new mines, the size of which is equivalent to Green Creek in southeastern Alaska. It is predicted that the mine will produce about 10 million ounces of silver this year. It is one of the largest producers of primary silver in the world.
Technical level gold and silver prices still dominate
From a technical perspective, the December gold futures bulls have a solid overall near-term technical advantage. On the daily bar chart, prices are in a six-week uptrend. The next upside target for the bulls is to close above the solid resistance at 1900.00. The next short-term goal for the bears is to push the futures price below the technical support of $1,800. The first resistance is at this week's high of $1,879.50, and then at $1885.00. The first support level is this week's low of $1851.00 and then $1839.00. Wyckoff’s market rating: 7.0.
(Spot gold daily chart)
GMT+8 At 8:22 on November 18, spot gold was quoted at US$1,688.80 per ounce.
In the six-week uptrend on the daily bar chart, the December silver futures bulls have the overall short-term technical advantage. The next upside target for the silver bulls is to close above the stable technical resistance of $26.13 per ounce. The next downside target for the bears is to close below the support of the November low of $23.045. The first resistance level is this week's highest at $25.49, and then at $25.75. The next level of support is seen at this week's low of $24.825, and then at $24.50. Wyckoff’s market rating: 6.0.
(Spot silver daily chart)
GMT+8 At 8:42 on November 18th, spot silver was quoted at $25.11 per ounce.
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