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Here's why the recent silver sell-off is a buying opportunity [Video]

The recent flash crash in Silver prices has not changed the precious metals long-term fundamental outlook.

Once you step back and take a look at the bigger picture, fundamentally, nothing has changed. Central banks around the world remain firmly committed to their massive quantitative easing programs, while allowing inflation to run hotter than usual, for some time yet.

And let’s not forget the whole ‘Infrastructure spending boom and Green Energy Revolution’, which is currently taking shape across the global economy.

This week, the U.S Senate approved a $3.5 trillion budget plan that follows on from President Biden’s $1 trillion Green Energy and Infrastructure spending bill.

Biden’s ambitious spending frenzy, ultimately means that the U.S is going to need more commodities. Specifically industrial metals including: Copper, Palladium, Platinum, Lithium, Nickel and rare earth metals.

Above all, it needs Silver – and lots of it.

Silver is a key component in President Biden’s ambitious $1 trillion dollar plan – as it will go into everything from Electric Vehicles, EV batteries and plug-in charging stations to power them – as well as the cables connecting new solar panel farms to the electric powered grid.

Based on our proprietary research, Silver demand is projected to rise in the second half of 2021, along with an expected increase in industrial demand, led by growing solar panel capacity – which is likely to exceed 150 Gigawatts globally in 2021.

That in itself presents an incredible opportunity for traders to increase their exposure in Silver at huge discount before it really takes off.

If prices can continue to trade sideways in the near-term that would suggest the recent spike lower is now the bottom and should be viewed as a buying opportunity.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

Author

Phil Carr

Phil Carr

The Gold & Silver Club

Phil is the co-founder and Head of Trading at The Gold & Silver Club, an international Commodities Trading Firm specializing in Metals, Energies and Soft Commodities.

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