Silver weekly special report based On 1.00 Lot Calculation:
SILVER USE AND MARKET SHARE:
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SILVER USE: Two thirds of annual demand come from industrial use, and the rest is used for jewelry and investments. According to BullionVault, 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.
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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.
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MARKET SHARE (CONSUMERS): The five largest silver consumer in the world are India, USA, UK, Germany and China.
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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 could continue their post-pandemic recovery this year.
ANALYSIS:
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EVENT: U.S. MIDTERMS (CONGRESSIONAL) ELECTIONS (NOVEMBER 11): CURRENT RESULTS: HOUSE OF REPRESENTATIVES (26 SEATS MORE TO BE DECIDED): DEMOCRATS= 198 AND REPUBLICANS= 211. SENATE (3 SEATS MORE TO BE DECIDED): DEMOCRATS= 48 AND REPUBLICANS=49. BREAKING (SENATE): Control of the U.S. Senate may once again be decided in Georgia, weeks after Election Day as a tight race between Democratic incumbent Raphael Warnock and Republican challenger Herschel Walker was headed to a Dec. 6 runoff.
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EVENT: US INFLATION IN OCTOBER FELL TO 7.7% (EXPECTED HEADLINE: 8.0%) FROM SEPTEMBER’S 8.2%. Core Inflation came down to 6.3% from previous 6.6%. Inflation remains strong despite the U.S. Federal Reserve’s latest attempts to reign it in with higher rates. Higher inflation usually increases demand for silver as the asset is traditionally considered a store of value.
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U.S. FEDERAL RESERVE RAISED INTEREST RATES IN OCTOBER TO 4.00% FROM 3.25% (ITS HIGHEST SINCE 2008). THE FED SIGNALED MORE INTEREST RATES ARE COMING BY THE END OF THE YEAR (EXPECTED ULTIMATE BY THE END OF 2022: 4.4% VS. 4.1% previously expected). NEXT MEETING: December 14. Expected Rate Increase: 0.50% points to 4.50%, which may increase volatility in the Silver market.
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ANALYST OPINION: Commerzbank sees silver reaching $26 an ounce in 2022.
Silver, November 17, 2022
Current Price: 21.00
|
Silver |
Weekly |
|
Trend direction |
|
|
25.30 |
|
|
24.20 |
|
|
22.20 |
|
|
19.80 |
|
|
17.90 |
|
|
17.00 |
Example of calculation base on weekly trend direction for 1.00 Lot1
|
Silver |
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|
Pivot Points |
||||||
|
Profit or loss in $ |
43,000.00 |
32,000.00 |
12,000.00 |
-12,000.00 |
-31,000.00 |
-40,000.00 |
|
Profit or loss in €2 |
43,172.69 |
32,128.51 |
12,048.19 |
-12,048.19 |
-31,124.50 |
-40,160.64 |
|
Profit or loss in £2 |
37,818.82 |
28,144.24 |
10,554.09 |
-10,554.09 |
-27,264.73 |
-35,180.30 |
|
Profit or loss in C$2 |
57,147.00 |
42,528.00 |
15,948.00 |
-15,948.00 |
-41,199.00 |
-53,160.00 |
- 1.00 lot is equivalent of 10,000 units
- Calculations for exchange rate used as of 11:50 (GMT) 17/11/2022
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
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You may wish to consider closing your position in profit, even if it is lower than suggested one
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Trailing stop technique can protect the profit – Ask your Client Manager for more detail