Kinesis Silver (KAG) Price Prediction

By CMC AI
14 June 2025 12:31AM (UTC+0)

TLDR

Silver (KAG) faces a mixed outlook, with bullish drivers like silver’s structural supply deficit and bearish risks from macroeconomic uncertainty, but shows technical momentum for potential upside.

  1. Audit-backed credibility strengthens trust in KAG’s 1:1 silver reserves.

  2. Silver’s industrial demand and supply deficits underpin long-term bullish case.

  3. Technical indicators suggest bullish momentum but warn of overbought conditions.


Deep Dive

1. Market & Competitive Landscape

KAG’s value is tied to silver’s dual role as a monetary metal and industrial commodity:
- Supply deficit: The Silver Institute forecasts a fifth consecutive annual supply shortfall in 2025 (Silver Institute). Industrial demand (50% of total use) grows from solar panels, EVs, and AI infrastructure.
- Competition: Unlike paper silver ETFs, KAG offers direct ownership of vaulted silver, addressing custody risks highlighted in ETF analyses (7 Critical Risks).

2. Macro & Regulatory Factors

  • Rate cuts: Markets price in 50 bps Fed cuts in 2025, potentially boosting non-yielding assets like silver.
  • Geopolitics: Escalating Middle East tensions and U.S. political instability (per Robert Kiyosaki’s “civil war” warnings) could drive safe-haven demand (Cryptonews).
  • Dollar weakness: Analyst Alasdair Macleod notes BRICS nations’ gold-backed currency initiatives may weaken USD dominance, benefiting precious metals.

3. Technical Outlook

  • Bullish signals: MACD histogram (+0.15) and RSI-14 (74) indicate upward momentum. Price trades above all key moving averages (50-day: $33.75, 200-day: $32.41).
  • Key levels: Immediate resistance at June 2025 swing high ($37.39). A breakout could target Fibonacci extensions at $40.73 (161.8%) or $42.80 (200%).
  • Risk: Overbought RSI-7 (76.94) raises short-term correction potential toward $34.69 (50-day EMA).

Conclusion

KAG’s price trajectory hinges on silver’s industrial demand outpacing supply, Fed policy easing, and its ability to capitalize on distrust in paper silver products. While technicals favor bulls, monitor $37.39 resistance and CPI/PPI data for confirmation.

What catalyst could accelerate institutional adoption of silver-backed tokens like KAG?

CMC AI can make mistakes. Not financial advice.