A lot of people think that 2024 will be Silver’s breakout year. Many factors contribute to their opinion, whether it’s the 2024 election, geopolitical issues, increasing government overspending, the US dollar quickly losing its spot as the world Reserve currency, demand rising with supply falling, creating record-breaking supply deficits this year, and many more reasons that make their case more realistic than ever before. Do I think 2024 is “the year”? I don’t know. So many unknown variables. But I do know one thing for sure, at the end of the day, those holding precious metals will be in a much safer position than someone whose money is just burning away in their bank account.
Investing Haven discusses the way to buy gold or silver for 2024, with a bullish outlook on both. Diversifying into gold is a great idea, as it offers a unique perspective on the precious metal market.
The second article discusses the potential of 2023. Both articles provide their opinions on both years, and it would be interesting to compare and contrast them. The author is optimistic about silver’s prospects in 2024, but doesn’t believe it will reach triple or quadruple digits. They have been vocal about this for some time. However, there are still many opportunities to invest in silver, and the author believes that the stars are aligning for a bright future. What do you think?
But, you know, I always say by the year 2025, 2026. I’ve been saying that for probably two years now. But we’re getting closer, and who knows? Maybe I’m wrong, maybe I’m right.
Which Precious Metal to Buy for 2024: Gold or Silver?
So, which precious metal to buy for 2024? Gold or silver? Based on the single most important leading indicator of gold and silver, it is clear that silver has more upside potential going into 2024. So they’re saying silver has more potential, but they are very bullish on gold as well, which makes a lot of sense. Silver just has this extra layer to it that gold simply doesn’t.
The authors of the second article discuss the potential of 2023 and why silver has tremendous bullish long-term setups. They also explain why gold is heating up, but silver is lagging behind. The authors believe that silver has the most upside potential in 2024, based on the leading indicator that dominates precious metals prices: COMEX Futures positioning. They even said so in public writings with very detailed public posts with their gold forecast and silver forecasts .
So, will gold hit new all-time highs in 2024? Short answer, yes. That is very interesting. What do you guys think, by the way? Do you think gold will hit all-time highs in 2024? So they say this and they go on to say, what is Gold’s highest monthly closing price and why it matters? Short answer, $1,989 an ounce. It matters because a monthly closing price above $1,989 might be the start of Gold’s long overdue rally to $2,250. Is gold expected to move higher and set new all-time highs? Obviously, yes. So, you know, expected is a very important word that stands out when they say this. Everybody is bullish on silver and gold, everybody.
To stay calm and focus on precious metals as leading indicators when gold and silver prices drop sharply. They claim that gold’s leading indicator, the COOT, has been very bullish in the last 10 years. The COOT is a stretch indicator that shows how far the price can move up or down depending on the trend. The authors also suggest considering other factors, such as the economy, geopolitics, and fundamentals, when predicting gold and silver prices. They say that incorporating both charts and analysis makes more sense than just looking at one or the other.
So they say that this is looking like a dominant trend. Similarly, it’s an indicator that suggests the likely of a turning point to occur. It is not a timing indicator. It will not tell exactly when a turning point might occur. So there’s no saying, “Oh, it’s going to happen next month.” So that said, we focus on the net short positions of commercial participants in the next gold Futures Market. The blue bear is in the center of the chart. When their positions get below 100,000 contracts, if implies the price of gold is stretched to the downside. There is not a lot of downside left. This is indicative of a turning point. The rally should occur soon. And that’s how to read these setups.
As seen in the last three years, there was only one occurrence in which net short positions of commercials fell below 100,000 contracts: summer of 2022. That setup last summer resulted in a price rally close to 30%. So, Gold’s COOT report suggests, and this is gold, the next one is silver, it suggests that it entered a neutral area. What this really means is that the outlook for the price is not bearish but also not super bullish because the most important influencing factor of price, which is COMEX positioning, is between bullish and bearish. The data point, the net short positions of commercials, blue bars, center pane on the chart below. So they’re saying it’s pretty much neutral. Let’s see what they say about silver, though.
The COOT report for silver indicates a bullish outlook due to the bullish COMEX positioning. The data points, net short positions of commercials, indicate that the outlook for silver’s price is bullish. Whether silver stays at $25 for another year or hits $50, owning silver is the best bet. Those who own physical precious metals are in a better position than those who don’t, as those who own silver are in a better position.
Investing in Silver: Supply and Demand Dynamics
The supply and demand dynamics of silver play a crucial role in determining its price. While production has seen an uptick in recent years, it has failed to keep pace with rising demand, driven by the industrial sector. This supply-demand imbalance can contribute to higher silver prices, making it an appealing option for investors. Furthermore, the monetary policies of central banks, particularly those related to interest rates and money supply, can influence the value of silver.
Silver is a precious metal that can be used for investing and making things. It keeps its value when other things lose it. It also protects your money from rising prices, which is good for saving. Adding silver to your portfolio can help you reduce risk and deal with market changes, as it moves differently from other things like stocks and bonds.
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Recognizing the investment potential for silver, it’s important to understand the dynamics and considerations linked to investing in this precious metal. Silver’s known for its price volatility, so investors should be mindful of the likelihood of short-term price fluctuations. Geopolitical events of global significance can significantly influence silver prices, and the investment potential for silver remains an intriguing topic for those seeking to diversify their portfolios and safeguard their wealth.
So, whether you’re considering gold or silver for your investment strategy, it’s clear that both metals have their advantages. While gold may be heating up, silver offers unique upside potential in 2024. The choice ultimately depends on your individual investment goals and risk tolerance.