We have all the metals higher again this morning, including silver, up nearly 1% by 8:45 AM CST. What we mentioned about the dollar is one of the causes, with the dollar moving lower vs. other currencies across Asia and Europe this morning.
But the other elephant in the room is clamoring for more solar power. European authorities are calling for 1000 additional Gigawatts of solar electricity to help mitigate their power and energy deficits. Depending on whether they install older or newer technology, it could take an additional 18.5 - 40 tons of silver per Gigawatt power produced.
That says nothing about demand from the rest of the world. In the words of the Lone Ranger, “Hi-Ho Silver! Away!” Our estimations last week about the 2022 lows being in for gold and silver are beginning to be confirmed by the technical charts on a 35-75 day basis. Momentum patterns are also beginning to support the idea of a gold rally over the next several months.
This fits well with other traditional indicators that favor a rally this quarter for gold and silver. Stay tuned!