Silver Price Outlook

“Since early July silver prices have been forming what may prove to be a base as they moved in a sideways fashion mostly between $18 and $20. Silver prices have broken out strongly to the upside at the start of November.

Some strength in silver prices was expected to occur during the last quarter of 2022 into the first quarter of 2023. Uncertain economic and political conditions, strength in gold prices, and seasonal strength in silver demand and prices are all factors that are expected to keep silver prices supported. That said, silver prices are not out of the woods, with monetary policy still expected to tighten in the coming months, which could act as a headwind to silver prices.

While silver was not in great shape over the past few months, its relative performance to gold has been improving, with the gold:silver ratio sliding to 85.5 in October, down from 95.6 in August. At 85.5 in October, the ratio still is high by historical perspective, and would be considered a positive for silver prices by those who use the ratio to determine direction for silver prices. That said, it is less strong of a factor in driving silver prices higher than it was a few months ago. CPM does not use the gold:silver ratio in its projections for either metal’s price.

Any further strength in silver prices will face a fair bit of resistance around $22.50. If silver prices are able to break above this level, the next resistance for silver prices is at $23.70. On the downside silver prices have initial support at $19.75.”