Silver Prices Face Risks Tds

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Silver Prices Face Risks Tds

Silver Prices Face Downside Risks

Silver prices have surged and reached new highs in the last few months. This rally was also driven by the strength in Gold, which also reached new highs.

According to TDS, the surging silver prices were initially driven by demand, but now it is due to the liquidity crisis. So, the chances of a big correction in the silver prices are now at an all-time high.

Outflows Expected In The Silver Market

TDS added that some major outflows are expected in the Silver market during the next few months. They believe that the liquidity crisis, which was pushing the silver prices higher, has now peaked.

They commented on how the liquidity is expected to return to the London markets. So when that happens, the upside breakout in the silver will fail. As a result, massive outflows are expected in the silver market.

Although this is not the end of the silver rally, it will definitely serve as a major pause. Looking ahead, we can expect the inventories in New York and Shanghai to erode.

In addition, the export controls are also expected, which will disturb the rebalancing mechanisms. One particular friction is the 'Section 232' tariffs, which can also prove to be a challenge for the Silver prices.

So, if there are people on the fence who are thinking of buying silver at high prices, then don't! Right now, one of the biggest mistakes anyone can make is to buy silver because of the FOMO.

Just like the Silver, the Gold market also appears to have gotten ahead of itself. So, you can also expect a major correction or even a crash in the Gold prices.

But if we look at the trend in Silver and Gold over the long term, then it's clear the direction is upwards. So, the best play here is to wait for the correction in Silver and other precious metals.

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