By Dr. Renisha Chainani, Head- Research, Augmont – Gold for all
This week saw a significant bullish breakthrough in the price of silver, aided by gold’s record-breaking surge. After struggling in previous years, silver prices appear to have finally broken over a significant resistance level at $26 (Rs 78500), joining the explosive gold advance. Silver prices are surging and have reached a two-year high of $27.43 in the international market and a record-high level of Rs 81350 in domestic markets.
We released a long-term report four months back on November 25, 2023 “Silver breakouts inverse H&S for target $27” with a buy recommendation at $24 (~Rs 73500) suggesting a $27 (Rs 82000) target for Silver, and that Target is achieved now.
The primary cause of the silver price surge is its widespread perception as a viable substitute for gold. After two weeks of continuous gains, gold is getting close to the crucial resistance level of $2300. From its lowest point in 2023, gold has increased by more than 42%.
The amount of silver in stock has been rapidly declining this year. Additionally, a deficit is anticipated in the industry this year. According to data, there were 1.02 billion ounces of silver in total supply in 2023 compared to 1.16 billion ounces of demand. If this occurs, silver will be deficient for the fourth consecutive year.
International Silver Weekly Chart
The next upward target for silver bulls would be for prices to close over the technical resistance level of $28.30 (~Rs 84000), and lastly, the extremely sensitive psychological level of $30 (~Rs 90000). We reiterate the buy recommendation in Silver as suggested in the “Gold and Silver expected to rise 10% and 20% respectively in 2024” report and recommend buying on dips again around $26(~Rs 79000) for the next target of $30 (~Rs 90000). Fundamental factors that would support a price rally as specified in this report remain the same.
For a better risk-adjusted return portfolio, it is always advised to allocate at least 15-20% of the portfolio amount into Gold and Silver divided equally. The best way to start or stay invested in Silver systematically is through Augmont Digital Silver SIP for better returns.
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