Silver is just about holding above $21 an ounce as investors and traders try to ascertain the precious metal’s true value in a macroeconomic environment in which interest rates are set to continue rising, set against strong industrial demand.
So far this year concern over how much longer the Federal Reserve and other central banks around the world will continue to increase their rates has been the dominant narrative for silver.
As a result, silver dropped by more than $3 an ounce in February but the early signs in March are that the price is now stabilising and the metal’s strong fundamental case is starting to creep back into the narrative again.
A key factor in how much higher silver can climb will come later this month when the Fed announces its latest interest rate decision. Another 25 basis point increase should enable silver to continue its recovery while a return to 50 basis point moves is likely to send the price plunging.
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 greenwash 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.