La Plata at the time of writing is close to US$ 30, with a return of around 60% so far in 2020. It has already surpassed Gold, which has an ROI of 34%. Bitcoin, on the other hand, is up 65%.
Without as much press as Gold and Bitcoin, Silver is making its way to being one of the year’s most profitable assets. One of the advantages of the precious metal is that the rise has solid foundations, due to the high demand for the raw material for electronic components.
Furthermore, there is no doubt that Silver is being used as a refuge asset, given the uncertainty in international markets.
Reflection of the day: La Plata calls for La Plata
Short-term Silver Trend
If we focus on the short-term analysis of Silver, the upward momentum remains intact. Everything is going to depend on breaking the psychological resistance of the $30. There’s the battle in the next few days/weeks.
At the time of writing, the spot Silver ounce is trading at US$ 28.83, after having touched its historical maximum at US$ 23.39 a few hours ago.
In the graph below you can see how the ROI of La Plata and Bitcoin Profit are getting closer. The BTC is slightly ahead of it by 5% to 65%.
All in favor of the precious metal?
Not all of them are good for the high price of Silver. A recent report by the Bloomberg news network showed that imports from India, the largest market for silver, could fall by up to 50% this year. The sector most affected would be the jewelry stores.
That is why in all markets it is important to find equilibrium prices. Because, with a strong rise without support, it could become a bubble in the future.