Silver, often referred to as the “poor man’s gold,” has been attracting a lot of attention in the investment world as its price continues to climb. In recent months, the price of silver has been hovering around the $30 mark, prompting many investors to wonder what will happen next if silver breaks through this key resistance level.

When silver breaks $30, it could potentially trigger a wave of buying from both retail and institutional investors. This could lead to a significant surge in the price of silver as demand outstrips supply. Many investors believe that silver has the potential to surpass its all-time high of $50 per ounce reached in 1980, if it can break through the $30 barrier.

One of the key factors driving the price of silver higher is its status as a safe haven asset. In times of economic uncertainty or market volatility, investors often turn to precious metals like silver as a store of value. With the current economic climate characterized by low interest rates, a weakening US dollar, and geopolitical tensions, silver is increasingly being seen as a hedge against inflation and a potential safe haven asset.

Another factor that could drive the price of silver higher is the increasing demand for silver in industrial applications. Silver is used in a wide range of industries, including electronics, solar panels, and healthcare. As the global economy continues to recover from the effects of the COVID-19 pandemic, demand for silver in industrial applications is expected to increase, putting further upward pressure on its price.

In addition to industrial demand, silver is also popular among investors as a means of diversifying their portfolios. As silver is negatively correlated with traditional assets like stocks and bonds, adding silver to a portfolio can help reduce overall risk and increase potential returns.

However, it is important to note that investing in silver carries risks as well. Like all commodities, the price of silver can be volatile and subject to sudden fluctuations. Investors should carefully consider their risk tolerance and investment goals before adding silver to their portfolios.

In conclusion, when silver breaks the $30 level, it could potentially signal the start of a significant upward trend in the price of silver. With increasing demand from both investors and industrial users, silver has the potential to outperform other assets in the current economic environment. However, investors should be aware of the risks involved in investing in silver and carefully consider their investment strategy before making any decisions.

LEARN MORE ABOUT: Precious Metals IRAs

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing

REVEALED: Best Investment During Inflation