After a bullish start to the month, Silver prices pulled back on the final trading day in February as traders booked profits.
Silver prices opened the month with all cylinders firing – soaring over 13% on the first trading day of February, to hit $30 an ounce for the first time since 2013. That's Silver’s biggest one-day move since 2008.
Currently, Silver prices are undergoing a routine end of month correction, as trader’s book profits. This will ultimately present a series of attractive opportunities to "buy back into Silver at huge discount" heading into March.
While Silver prices remains vulnerable to further weakness in the near-term – it goes without saying – the fundamental backdrop for precious metal remains extremely bullish in the long-term.
One of the key drivers for further upward momentum in Silver prices is the risk of rising inflation.
Another bullish factor is the global fight against climate change. Silver is a key component used in renewable energy and solar power technology. As governments around the world pursue more aggressive environmental policies to reduce carbon emissions – this will continue to boost silver demand for years to come.
Silver was a favourite with traders last year as the precious metal rallied nearly 60% – and still remains one to watch in 2021.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
Trading has large potential rewards, but also large potential risk and may not be suitable for all investors. The value of your investments and income may go down as well as up. You should not speculate with capital that you cannot afford to lose. Ensure you fully understand the risks and seek independent advice if necessary.
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