(ThyBlackMan.com) The sentiment is more supportive for the silver market in 2019, after the many challenges it faced last year. The demand is expected to rise and the price to strengthen, two solid reasons to invest in the precious metal. Find out below more details about the silver market, what influences it and how this asset can bring you great returns.
The Silver Market in 2019
This year started well for silver, as it passed the US$16 bar and the U.S. Mint already sold 12% more American Eagles in January compared to the same month of the previous year. The Silver Institute has released a report with a few insights regarding the 2019 silver market trends.
According to the report, the silver demand from industrial fabrication, which is accounted for 60% of total demand, is expected to rise this year. “This is on the back of continued demand from the automotive sector, which uses an increasing amount of applications, such as safety features, window defogging and infotainment systems, and for electric and hybrid vehicles” claimed the Silver Institute. 
Moreover, India is expected to remain the largest silver consumer and the jewelry sector is also projected to strengthen, mainly due to a major interest from Thailand. The Exchange-traded products (ETPs) are also expected to climb by 8 million ounces.
On the other hand, the silver supply is forecast to decline by 2%, but the silver scrap supply is expected to rise modestly. When it comes to its price, the Silver Institute thinks the precious metal will average around US$16.75, which is a 7% increase over the 2018 average price.
How to trade silver in a profitable way
There are many ways you could invest in this precious metal, including buying it in physical form as coins or bars. However, the easiest and ideal way is to do it through an online commodities broker. Using the services of a professional online investment company can help you pursue your financial goals easier, faster and grow as an investor. TradeFW.com is one of these companies and a real financial partner you can trust. It takes care of your capital and minimizes your risks with negative balance protection, segregated accounts, and the possibility to make fast withdrawals. The broker also provides you with a modern and professional environment to trade and grow.
After picking your broker, you need to develop a trading plan that will keep you grounded. Begin by making a priority to check the factors that drive the silver prices before placing a trade. Some of the main factors include the U.S. dollar price, the gold prices, the U.S. interest rates and government policies. Silver moves generally alongside gold, so don’t neglect the other safe-haven asset. Use the fundamental & technical analysis at all costs and combine them with a strategy that corresponds to your trading style and financial objectives. This is the recipe of the best strategy for silver trading! One strategy you could use to get quick returns is the silver breakout trading. This method implies opening a position when the silver price is moving outside a certain price range.
Create a risk management plan, too. Set stop loss / take profit orders and allow a fixed amount of money per trade. In addition, to avoid overtrading, establish from before a number of positions to open on a daily basis.
Silver trading – highs and lows
Silver is a low-cost and a low-risk investment able to generate outstanding returns. It doesn’t depreciate in value; it is a hedge against inflation and performs well in tensioned and uncertain political & economic times. However, the fact that silver is so liquid can be a disadvantage, because you can lose your capital in a few seconds if the market turns against you. The risk management plan will diminish the probability of this scenario to occur. Another downside of investing in silver through ETFs, or CFDs is the absence of that feeling of security which is present when you hold a coin or silver bullion in your hand. Luckily, if you manage to choose a trustworthy online broker like TradeFW, this inconvenience will disappear.
Conclusion
Silver is a low-risk investment, yet it can also be an extremely lucrative one. The best strategy to trade this asset is a combination between the technical & fundamental analysis and an approach that reflects your style and goals. Although it holds a great number of advantages, there are also chances you could lose big amounts of money – a situation which can sometimes be avoided if you choose the right broker to assist you. If you remain focused and devoted to your trading plan, the profits will come right away!
Staff Writer; Gary Love