Silver weekly special report based On 1.00 Lot Calculation:
SILVER USE AND MARKET SHARE:
- SILVER USE: Two thirds of annual demand come from industrial use, and the rest is used for jewelry and investments. According to Bullion Vault, silver is invaluable to batteries, dentistry, glass coatings, LED chips, medicine, nuclear reactors, photography, photovoltaic (or solar) energy, RFID chips (for tracking parcels or shipments worldwide), semiconductors, touch screens, water purification, wood preservatives and many other industrial uses.
- MARKET SHARE (PRODUCERS): Mexico is the largest producer holding 22.7% of the markets, while Peru is the second largest with 14% of the markets. China is third on the list with 13.8% of the global production, while Chile takes up 6.00% of the markets. Russia holds 5.4% of total market share.
- MARKET SHARE (CONSUMERS): The five largest silver consumer in the world are India, USA, UK, Germany and China.
- EXPECTATIONS FOR SILVER (2022): Metals Focus forecasts a 5% rise in global silver demand due to further structural advancements in industrial fabrication, which is expected to achieve another record high in 2022. Jewelry and silverware demand should continue their post-pandemic recovery this year.
ANALYSIS:
- EVENT (FRIDAY, DECEMBER 2 at 13:30 GMT): NONFARM PAYROLLS AND UNEMPLOYMENT RATE IN THE US FOR NOVEMBER. The NFP is expected at 210K, down from October’s 261. This would be the smallest increase since December 2020. Unemployment rate is expected to remain unchanged at 3.7%.
- EVENT (TUESDAY, DECEMBER 13 at 13:30 GMT). US INFLATION IN OCTOBER FELL TO 7.7% FROM 8.2%. This factor is expected to make the Fed change the course on their interest rate hikes, as especially, the unemployment is expected to rise further in the coming months.
- EVENT: U.S. Federal Reserve Meeting and Interest Rate Decision (December 14th, 2022, 19:00 GMT) - Federal Reserve Chairman Jerome Powell said Wednesday that the central bank will likely moderate its pace of rate hikes in the coming months, as it steps back to observe the effects of sharp interest rate hikes on the economy this year. The Federal Open Market Committee will complete their 2-day meeting on December 14th and announce changes to the Federal Funds Rate target. Following the lower than expected inflation print, some Federal Reserve members have highlighted the need to slow rate hikes down. Futures markets currently forecast an 85.4% chance of a 50 basis point hike on December 14th.
- China’s zero-COVID policy caused widespread economic disruption in the country this year, denting business activities and also weighing on its appetite for commodities. But a potential reopening in the world’s largest industrial metals importer is largely expected to trigger a recovery in demand, benefiting silver prices.
- ANALYST OPINION: Commerzbank sees silver reaching $26 an ounce in 2022.
Silver, December 1, 2022
Current Price: 22.00
Silver |
Weekly |
Trend direction |
|
27.10 |
|
25.20 |
|
23.20 |
|
20.80 |
|
18.90 |
|
17.00 |
Example of calculation base on weekly trend direction for 1.00 Lot1
Silver |
||||||
Pivot Points |
||||||
Profit or loss in $ |
51,000.00 |
32,000.00 |
12,000.00 |
-12,000.00 |
-31,000.00 |
-50,000.00 |
Profit or loss in €2 |
51,204.82 |
32,128.51 |
12,048.19 |
-12,048.19 |
-31,124.50 |
-50,200.80 |
Profit or loss in £2 |
44,854.88 |
28,144.24 |
10,554.09 |
-10,554.09 |
-27,264.73 |
-43,975.37 |
Profit or loss in C$2 |
67,779.00 |
42,528.00 |
15,948.00 |
-15,948.00 |
-41,199.00 |
-66,450.00 |
1. 1.00 lot is equivalent of 10,000 units
2. Calculations for exchange rate used as of 13:50 (GMT) 01/12/2022
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
- You may wish to consider closing your position in profit, even if it is lower than suggested one
- Trailing stop technique can protect the profit – Ask your Client Manager for more detail