Gold 
“Silver Price Outlook
Silver prices had been moving between $22.50 and $25.00 since the middle of May 2023. The support of that range held up well until the end of September, with prices breaking forcefully below $22.50 at the start of October.
Prices could move sideways to lower in the near term, with initial support for prices at the $20.40 level, followed by support at the $19.95 level. While such weakness is possible in the near term, prices are expected to move back into their earlier trading range of $22.50 and $25.00 during the last couple of months in 2023.
As with gold, an extreme breakout to the downside should not be ruled out, in which silver prices could fall back toward $18, but this is the less probable scenario. Such a price scenario would entail much stronger economic growth than is expected, which could be supportive of silver fabrication demand but would hurt silver investment demand. Given the greater importance of silver investment demand in influencing prices, weakness in this area would have a net negative impact on the price of silver. That said, this is not CPM’s base case. The more probable scenario is one of a slowdown in economic growth and silver prices stabilizing if not recovering slightly.
The gold to silver price ratio has been high in recent months, but it has been in a declining trend. In February 2023 the monthly average ratio stood at 88.9, its highest level for this year. Since then it moved gradually lower, averaging 79.2 in August, which was its lowest level during the first three quarters of 2023. The ratio climbed to an average of 81.1 in September and in the early days of October the ratio shot back up strongly. The average ratio during the first three trading days of the month stood at 86. While the ratio can go on rising and there is no particular level at or above which silver will start outperforming gold. The higher the ratio the more silver is underperforming gold and the better the chances on a relative value basis that silver prices will rise.”
*This information is solely an excerpt of a third-party publication and is incomplete. Please subscribe to the referenced publication for the full article. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
