Silver Outlook: Financial Asset Meets Green Agendas

Silver retested an 11-year high at $32.52 per ounce
Increasing Silver demand is expected in alignment with global Green Agendas
Exponential AI advancements are expected to boost silver demand potential
Technical Analysis: Key levels to watch

Since the sharp rebound of silver in 2020 near its $11 low, leading economists including Robert Kiyosaki, Mike Maloney, and Ray Dalio have highlighted the potential of silver as a robust investment, from both financial and environmental perspectives. The fundamental strengths of the metal, coupled with significant price action patterns throughout its chart history, have made silver an attractive investment opportunity since 2020.

Analyzing the Foundations of the Silver Bull Run:

Alignment with Global Green Agendas and Sustainable Development Goals (SDGs): From the agendas of the United Nations towards that of China and the UAE, extending from 2030 to 2060, silver is regarded for its key role in the advancement of sustainable plans. Its industrial applications align with:

Clean Energy Transition: Silver is essential in the production of solar panels and electric vehicles. Recent headlines highlight increased Chinese demand for solar panels, boosting silver premiums and reducing inventories.
Innovation and Renewable Technology: Silver's use in electronic devices and 5G networks supports innovation and sustainable technology initiatives.
Climate Action: Silver's role in water purification and treatment underscores its importance in climate mitigation efforts.

Monetary System Significance: the silver standard, along with that of gold have played a crucial role in shaping the grounds of our monetary system today, having the real and scarce store of value behind our currencies. With that fact, investors seek the precious metals as a hedge for the ever-growing inflationary pressures. In terms of affordability, silver is in the spotlight for the easier affordability over the yellow metal, sharpening its performance and demand levels.

Correlation with Artificial Intelligence Trends: Silver, known for its exceptionally low electrical resistance among metals used in tech manufacturing, is poised to benefit from the exponential growth of AI. As AI technology advances, the demand for silver is expected to surge in tandem. Silver, along with palladium and platinum, plays a crucial role in powering the chips at the heart of AI technology. This essential function underscores the vast potential and increasing demand for these metals, driven by their critical contributions to the rapidly evolving tech industry.

Technical Analysis:

Silver Outlook: XAGUSD – Weekly Time Frame – Logarithmic Scale

Long-Term Bullish Perspective: Using the Fibonacci extension tool from the 2008 low, 2011 high, and 2020 low:

The 32.52 level aligns with the 50% extension level
The 37.20 level aligns with the 61.8% extension level, and a break above 34 would confirm the up-trending trajectory as it represents the 61.8% retracement zone between the chart’s all time high and low
The 40 level is a significant round number checkpoint prior to a potential continuation towards the 44.20 zone.
The 50 level represents a key milestone between silver's all-time high and new historical levels, potentially approaching a three-digit value.

Medium - Long-term Bearish Perspective: Supports are currently held near the 2020 high resistance levels between $30-$29. Further drops could regain bullish momentum at $28, with $26 as the next potential support in a more extreme bearish scenario.

The World’s leading economies, with China in the lead as the largest consumer, are increasingly incorporating silver within their industrial expansion trajectory, setting the metal on a high potential bull run. Contractionary policies and geo-political risks might halt the progress of the mentioned trends, yet the bullish potential of the metal can stay promising from an evergreen outlook.

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.cityindex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.

ALL TRADING INVOLVES RISKS. LOSSES CAN EXCEED DEPOSITS.

City Index is a trading name of StoneX Financial Pte. Ltd. (“SFP”) for the offering of dealing services in Contracts for Differences (“CFD”). SFP holds a Capital Markets Services Licence issued by the Monetary Authority of Singapore for Dealing in Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading. SFP is also both Derivatives Trading and Clearing member of the Singapore Exchange (“SGX”). SFP is a wholly-owned subsidiary of StoneX Group Inc.

The information provided herein is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to invest, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk.

The information does not represent an offer of, or solicitation for, a transaction in any investment product. Any views and opinions expressed may be changed without an update. To understand the risks and costs involved, please visit the section captioned “Important Information” and the “Risk Disclosure Statement”.

The information herein is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

StoneX Financial Pte. Ltd. 1 Raffles Place, #18-61, One Raffles Place Tower 2, Singapore 048616. Tel: 6309 1000. Co. Reg. No.: 201130598R.

This advertisement has not been reviewed by the Monetary Authority of Singapore.