Silver has finally stemmed its losses with the price pushing back up towards $22 an ounce.
While this still represents a significant drop compared with where the metal was trading in mid-April, for silver investors this presents some light relief after a brutal run saw the price sink to its lowest since July 2020.
The macroeconomic hasn’t broadly changed in recent days with buyers finally returning to silver more a reflection of how undervalued it had become.
Live Silver Price – $/oz
The Federal Reserve’s planned series of interest rate hikes will remain a significant headwind for silver, with its lack of yield making it less attractive compared to other interest-bearing asset classes. Concerns over global economic growth are also a limiting factor with silver’s more industrial outlook compared with gold.
However, in these volatile trading conditions that have seen some dramatic daily moves on the world’s largest equity indices, a sudden surge in silver’s price shouldn’t be ruled out.
With a smaller investment pool than gold, silver can experience bigger swings and if investors start to buy into silver’s fundamental appeal, which could see another record year of demand, then the price could quickly spring back up to the $25 an ounce level seen just a few weeks ago.
Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience in writing about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News.
As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewable energy and the challenges of avoiding greenwashing while investing sustainably.
This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.
Silver has finally stemmed its losses with the price pushing back up towards $22 an ounce. While this still represents a significant drop compared with where the metal was trading in mid-April, for silver investors this presents some light relief after a brutal run saw the price sink to its lowest since July 2020.
The macroeconomic hasn’t broadly changed in recent days with buyers finally returning to silver more a reflection of how undervalued it had become.
The Federal Reserve’s planned series of interest rate hikes will remain a significant headwind for silver, with its lack of yield making it less attractive compared to other interest-bearing asset classes. Concerns over global economic growth are also a limiting factor with silver’s more industrial outlook compared with gold.
However, in these volatile trading conditions that have seen some dramatic daily moves on the world’s largest equity indices, a sudden surge in silver’s price shouldn’t be ruled out.
With a smaller investment pool than gold, silver can experience bigger swings and if investors start to buy into silver’s fundamental appeal, which could see another record year of demand, then the price could quickly spring back up to the $25 an ounce level seen just a few weeks ago.
Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience in writing about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News.
As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewable energy and the challenges of avoiding greenwashing while investing sustainably.
This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.
