Silver is ending the first full trading week of September in danger of sinking below $23 an ounce with the precious metal falling out of investor popularity in the face of a strong US dollar and the prospect of higher for longer interest rates.
The fact that silver has fallen so sharply with the metal trading close to $25 an ounce at the end of August reflects both silver’s increased volatility compared to its precious metal peer, gold, as well as the metal’s tendency to endure these swings in and out of investor popularity.
The almost $2 an ounce drop in the space of little over a week doesn’t reflect silver’s resoundingly strong fundamental case in which the metal’s industrial demand, particularly from the solar and electric vehicle sectors, has been outpacing mined supply for a number of years with the trend set to continue for many years yet.
As a result, this price drop represents another attractive opportunity for investors to bolster their holdings or an ideal entry point for a metal that could well be trading nearer to $30 a year from now.
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.
