Phil Carr
The Gold & Silver Club
After hitting two month highs, Silver prices pulled back on Wednesday as trader’s booked profits following the Federal Reserve’s January Policy meeting.
Silver prices retreated from January highs as Fed Chair Jerome Powell made clear the U.S central bank would act as needed to cool the hottest inflation in almost 40 years. That includes a possible interest-rate lift-off in March and more frequent, larger hikes by year-end.
This routine calendar event, once again presented savvy traders with an incredible flow of back-to-back lucrative opportunities to capitalize on the on the recent rally and subsequent post-FOMC pullback.
Regardless of the Fed’s hawkish tilt, when you look at the bigger picture for Silver prices, fundamentally nothing has changed. Inflation is still surging at a record pace, which in return is driving up for the demand precious metals, all combined with the fact that the metals market is in a "triple deficit" – low inventories, low spare capacity and low investment.
At the same time, the switch toward a greener world is creating fresh demand for metals such as Aluminium, Copper, Lithium, Nickel and Silver, which are all key to the green energy revolution.
That in itself presents an incredible opportunity for traders to increase their exposure in Silver at huge discount before it really takes off. In my opinion, any substantial pullbacks should be viewed as buying opportunities.
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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