Why Is The Silver Price Rising?

Silver, Bars, 5000 Grams, Real Value

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The price of silver has risen rapidly in recent weeks. The last three months have been fairly volatile. Prices fluctuated from the lows of $20.71 to the current price of $26.32 at the time of writing.

XAGUSD April 2024

Here are a few key variables for the price movement:
 

Uncertainty in the Economy

Silver like any other precious metals is regarded as a safe haven asset. During the times of financial instability several investors would turn to silver as an affordable way of protecting their capital. The COVID-19 pandemic caused a jump in the price of silver as investors wanted stability. Present economic situation along with ongoing conflicts and mounting US debt are some of the causes that contributes towards the current price action in precious metals.
 

The Industrial Demand

Silver is used in a wide range of industrial applications including electronics and solar panels. As the global economy gets better the manufacturing activity increases which in turn raises the demand for silver. China's manufacturing activity grew for the first time in the past six months according to the figures published on this Sunday. Despite the fact that the Chinese solar industry is currently experiencing an oversupply, demand for cleaner and need for more energy is anticipated to stay high. Silver is utilized in this industry by turning silver powder into a paste-like substance that is then applied onto a wafer of silicon. Every solar panel contains around 20 grams of silver in it. 
 

Lower Mine Production

Based on the 2023 World Silver Survey mining output dropped by 0.6 percent from 2021. The decrease in supply, combined with greater demand, could result in higher silver prices.
 

Market Speculation

Influential figures in the silver business like Keith Neumeyer the CEO of First Majestic Silver has predicted that silver prices might rise above $100 per ounce. Such projections can feed market speculation and raise silver prices. The current Gold to Silver Ratio Stands at 86.54
 

Geopolitical Events

Global events, like banking instability and geopolitical tensions, can have an impact on silver prices. In particular, the Ukraine conflict, the Israel-Hamas war, and US banks crises in 2023 might all serve as catalysts.

The current upward trend of silver is caused by a number of economic, industrial, as well as geopolitical factors. As these dynamics evolve it shall be interesting to see where the price of silver goes in the months to come. For time being it appears that those who placed a bet are winning big.


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Linda Willis 8 months ago Member's comment

Do you prefer silver over gold?

Keral Patel 8 months ago Contributor's comment

Both. Depending on what is undervalued at particular time.