Peter Krauth on Silver's Bright Future: Targeting $100 with AI-Driven Demand

Silver gained sharply on easing US treasury yield. It hit a low of $29.64 and currently trading around $30.72.

Rising Demand for Silver Amid AI Advancements

In a recent interview, Peter Krauth, author of The Great Silver Bull, highlighted the rising demand for silver, especially because of advancements in artificial intelligence (AI) and industrial uses. He pointed out that silver is crucial for technology and renewable energy, as it is needed for components in AI technologies like semiconductors. The market is facing a supply shortage due to dwindling silver stockpiles and difficulties in opening new mines, which could push prices higher. Although there have been large outflows from silver ETFs, Krauth noted that silver futures show institutional investors remain positive about silver. He believes silver could reach $100 per ounce or more by 2030, driven by strong demand and limited supply. Krauth also emphasized that the growth of AI will further increase the metal’s value as technology develops.

Current Market Indicators

The gold-silver ratio is currently at 86.67, showing that gold has outperformed gold recently. A ratio above 80 suggests silver might become a more attractive investment compared to gold.

Technical Analysis: Key Levels to Watch

For trading, the major level to monitor is $30. Silver is below key moving averages, with near-term support at $30. If it falls below this, it could target $29.60/$28.47. On the upside, immediate resistance is at $30.80; breaking this could lead to targets of $31.25/$31.75,$32.20, $32.75, $33, $33.60, $34, $34.50, and even $34.73.

Trading Strategy: Opportunities in the Current Market

It may be a good strategy to buy on dips around $30.28-30, with a stop-loss at $29.60 and a target price of $31.75.