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: U.S. Federal Reserve Meeting and Interest Rate Decision (December 14th, 2022, 19:00 GMT) - The Federal Open Market Committee will complete their 2-day meeting on December 14th and announce changes to the Federal Funds Rate target. After delivering four consecutive 75 basis points hikes, the U.S. central bank is widely expected to increase interest rates by 50 basis points.
- US INFLATION IN NOVEMBER FELL TO 7.1% FROM 7.7%. Data showed that headline U.S consumer prices rose modestly in November on an annual basis as gasoline and used cars cost less, leading to the smallest annual inflation increase in nearly a year. In the 12 months through November, the CPI climbed 7.1%, the smallest gain since December 2021, following a 7.7% rise in October.
- CHINA KEPT RELAXING COVID RESTRICTIONS AFTER PROTESTS. In recent days, major cities across China have continued to loosen the severest of those measures. Authorities in the southwestern municipality of Chongqing urged local bodies not to test too much. The capital, Beijing, has also dropped testing for public transport. Metals rose sharply on the prospect of a broader Chinese reopening, given that the country is one of the biggest commodity importers in the world.
- ANALYST OPINION: Commerzbank sees silver reaching $26 an ounce in 2022.
Silver, December 14, 2022
Current Price:23.70
|
Silver |
Weekly |
|
Trend direction |
|
|
28.10 |
|
|
26.40 |
|
|
24.90 |
|
|
22.60 |
|
|
21.10 |
|
|
20.00 |
Example of calculation base on weekly trend direction for 1.00 Lot1
|
Silver |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
44,000.00 |
27,000.00 |
12,000.00 |
-11,000.00 |
-26,000.00 |
-37,000.00 |
|
Profit or loss in €2 |
44,176.71 |
27,108.43 |
12,048.19 |
-11,044.18 |
-26,104.42 |
-37,148.59 |
|
Profit or loss in £2 |
38,698.33 |
23,746.70 |
10,554.09 |
-9,674.58 |
-22,867.19 |
-32,541.78 |
|
Profit or loss in C$2 |
58,476.00 |
35,883.00 |
15,948.00 |
-14,619.00 |
-34,554.00 |
-49,173.00 |
1. 1.00 lot is equivalent of 10,000 units
2. Calculations for exchange rate used as of 9:50 (GMT) 14/12/2022
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Senior Account ManagerClient 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 Senior Account ManagerClient Manager for more detail