Posted 20th Juni 2022

Silver Struggles to Make Gains as Investors Switch Off to Any of Metal’s Appealing Factors

fine silver 999 bullion

Silver is struggling to make any headway with the price trading around $21.50 an ounce.

After the painful run of losses from mid-April to mid-May that saw the price fall by more than $5, the brief attempt to recover some of those losses was stopped in its tracks by the Federal Reserve’s 75 basis points move last week.

Silver can draw on multiple factors to drive its price but unfortunately, none of those are looking particularly compelling in the short term. Its perceived role of being a hedge against inflation is failing against aggressive tightening monetary policies from central banks to try and curb rising prices.

Live Silver Price – $/oz

Similarly, investors look to be choosing other haven assets to protect against sharp plunges on equity markets. While silver’s industrial appeal is dwindling against the context of a potential global recession looming.

Put all that together and it explains why silver is trading close to two-year lows. However, as soon as a shift in sentiment emerges, there is a strong fundamental case for silver to climb in the medium-term given its use in the key technologies and industries of our time, notably solar energy and in batteries for electric cars.


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