Experts keep releasing new forecasts for the market of silver. They say that silver prices may gain 15-18% by late 2012, thus nearing $33/oz. the investment demand for silver has been growing over the last few weeks.
Therefore, we may see a price rally in the market of silver. However, first, it is necessary to eliminate a range of hindering factors. The industrial demand for silver, which accounts for 505 of the overall demand, is still declining.
In general, the silver futures contract is still bullish and is trading around $28.40/oz. However, it hasn’t consolidated above any major level of resistance. So, there is no stability.
The chart below, courtesy of , reflects the current state of affairs in the market of silver.
At this point, the widening-triangle scenario looks fairly probable. The latest sub-wave [g] has the shape of EDT. If the supposition is true, we will see silver prices growing in the near future. The alternative scenario suggests the EDT (the first wave) as the beginning of a new downtrend.
