{"id":13655,"date":"2022-08-22T01:30:47","date_gmt":"2022-08-22T01:30:47","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/analyst-says-if-silver-dips-below-18-precious-metal-could-get-absolutely-smoked-morgan-report-founder-expects-a-supply-crunch-finance-bitcoin-news\/"},"modified":"2022-08-22T01:30:47","modified_gmt":"2022-08-22T01:30:47","slug":"analyst-says-if-silver-dips-below-18-precious-metal-could-get-absolutely-smoked-morgan-report-founder-expects-a-supply-crunch-finance-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/analyst-says-if-silver-dips-below-18-precious-metal-could-get-absolutely-smoked-morgan-report-founder-expects-a-supply-crunch-finance-bitcoin-news\/","title":{"rendered":"Analyst Says if Silver Dips Below $18, Precious Metal Could ‘Get Absolutely Smoked’ \u2014 Morgan Report Founder Expects a Supply Crunch \u2013 Finance Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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While gold\u2019s been teetering along at just under $1,750 per ounce, the price of silver has dropped considerably, sliding 2.33% in value against the U.S. dollar during the last 24 hours. Silver has lost more than 28% against the dollar during the last 165 days or since March 8, 2022. Despite the lower prices, David Morgan, the founder of The Morgan Report, believes silver is expected to see a crunch in supply. In ten years\u2019 time, Morgan thinks silver will be one of the best investments of the decade.<\/strong><\/p>\n

David Morgan Insists the \u2018Industrial Side Alone Is Probably Going to Take All the Silver\u2019<\/h2>\n

During most of 2021 and the second half of 2022, many investors have been focused on assets like gold<\/a> and bitcoin<\/a>. Silver, on the other hand, has not performed as well and both silver spot prices and silver mining stocks have underperformed the S&P 500.<\/p>\n

In February 2021, Bitcoin.com News reported<\/a> on the so-called \u2018silver squeeze\u2019 sparked by anonymous cohorts on the Reddit forum r\/wallstreetbets. That week, silver soared over $30 an ounce<\/a> in USD value, and many precious metal dealers said they were out of stock.<\/p>\n

In 2022, an ounce of fine silver managed to reach a high of $26.46 per ounce<\/a> during the second week of March. On March 8, 2022, gold\u2019s price per ounce hit a new lifetime high as it traded above the $2,070 range<\/a>.<\/p>\n

Silver has lost more than 28% in value since March 8, as it is currently coasting along at $19 per ounce on Saturday evening (EST) on August 20, 2022. Despite the significant losses, the founder of The Morgan Report<\/a>, David Morgan, believes silver will see a crunch in supply in the next ten years.<\/p>\n

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This weekend, silver\u2019s price per ounce has been meandering just above the $19 range.<\/figcaption><\/figure>\n

On August 19, 2022, Morgan discussed silver\u2019s value with the anchor and producer at Kitco News David Lin. In the video<\/a> published on Youtube on Friday, Morgan told Lin the silver supply could run dry in the future. According to data<\/a> collected by the Silver Institute, the world\u2019s silver demand will hit a record 1.112 billion ounces in 2022.<\/p>\n

\u201c[USGS] said that silver would be the first element on the periodic table that would be in such short supply, and that was a few years back,\u201d Morgan detailed. \u201cJust the industrial side alone is probably going to take all the silver available at some point in time.\u201d<\/p>\n

The precious metals analyst added:<\/p>\n

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If you\u2019ve got a long time horizon, like ten years or more, I can\u2019t think of something that would be better than a silver investment. Silver will shine at some point \u2026 but it\u2019s probably going to take a natural corner \u2026 a natural corner is when industry alone sucks up all the silver that\u2019s available and there isn\u2019t any left.<\/p>\n<\/blockquote>\n

FX Empire Strategist Highlights a Gap in the Silver Futures Market, Analyst Expects \u2018a Lot of Downward Pressure\u2019<\/h2>\n

However, in the short term, fxempire.com\u2019s precious metals analyst Christopher Lewis envisions silver dipping below $18 per ounce. Lewis says there\u2019s a gap in the silver futures market,<\/a> and he believes the gap will be filled in the near future.<\/p>\n

\u201cAt this point, it looks like we will fill the gap rather soon, perhaps down to the $18.50 level. If we break it down below there, then the $18 level is also important, as it is a large, round, psychologically significant figure, and an area where we have recently seen a lot of support.\u201d Lewis\u2019s technical analysis report<\/a> continues:<\/p>\n

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Ultimately, this is a market that I think continues to see a lot of downward pressure, and if we can break down below the $18.00 level, that probably kicks off the next great leg lower. In that scenario, it\u2019s very possible that we could see silver get absolutely smoked.<\/p>\n<\/blockquote>\n

Morgan Declares There Is No Silver Substitute<\/h2>\n

During Morgan\u2019s interview, he noted that silver often stems from base metal<\/a> mining and said the supply will shrink from that sector as well. \u201cSeventy percent of silver is a result of base metal mining \u2014 If that is down, and down noticeably, then that takes a great deal of silver supply off the market,\u201d Morgan said to Lin.<\/p>\n

Earlier this year reports<\/a> detailed that silver demand would swell by 5% this year and jewelry demand was forecast to grow 11%<\/a> in 2022. Although, despite macroeconomic uncertainties from the war and the world\u2019s inflationary pressures, silver has underperformed as a safe haven asset.<\/p>\n

In fact, during the pandemic in 2020 merceradvisors.com\u2019s Donald Calcagni published a scathing paper<\/a> on how \u201csilver has not been a consistent hedge against inflation or a stable, reliable store of value.\u201d The same has been said about gold this year as research<\/a> shows that gold has \u201can extremely low correlation to inflation.\u201d<\/p>\n

Bitcoin (BTC)<\/a> has also shown a low correlation to inflationary pressures and in 2022, data shows<\/a> the leading crypto asset has been correlated with stocks<\/a>. Speaking with Lin during his interview on Friday, Morgan suggested silver will be one of the best investments of the decade.<\/p>\n

The precious metals analyst opined that he believes the industrial world will always demand silver. \u201cNothing reflects light as well as silver, and nothing conducts electricity as well as silver,\u201d Morgan stressed during the interview. \u201cMost silver applications are absolutely essential and irreplaceable. There is no substitute.\u201d<\/p>\n

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\nTags in this story
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Bitcoin<\/a>, Bitcoin (BTC)<\/a>, Christopher Lewis<\/a>, David Lin<\/a>, David Morgan<\/a>, Downward Pressure<\/a>, futures gap<\/a>, FX Empire<\/a>, gold<\/a>, industrial use cases<\/a>, industrial value<\/a>, Kitco<\/a>, Markets<\/a>, Precious Metals<\/a>, r\/wallstreetbets<\/a>, silver<\/a>, Silver Futures<\/a>, silver mining<\/a>, Silver Price<\/a>, Silver Prices<\/a>, Silver Squeeze<\/a>, Technical Analysis<\/a>, The Morgan Report<\/a>, the Silver Institute<\/a>, USGS<\/a><\/div>\n<\/div>\n

What do you think about silver\u2019s significant decline since March 8 and the recent 24-hour losses? What do you think about David Morgan\u2019s opinion about the future value of silver? Let us know what you think about this subject in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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