Silver is holding above $25 an ounce for the time being as investors reappraise the true value of the precious metals complex after the price surge earlier in the month.
The prospect of at least one more interest rate hike by the Federal Reserve is keeping a lid on further gains for silver with the physical metal’s lack of dividend reducing its attraction at times of rising rates. To counter this, the Kinesis silver KAG asset not only provides the security of a physically-backed asset but also provides a monthly yield to holders.
It will be interesting to see what direction silver goes from here as the fundamental outlook in which demand is outweighing supply points to the metal having the potential to climb higher still. It is yet to reach the high it achieved in March last year for example prior to the Fed implementing its series of large interest rate hikes.
So far the environment of rising interest rates has dominated silver’s price trajectory but with the end of the hike cycle drawing near and industrial demand remaining very healthy, the second half of the year could see silver push on above $26 and potentially challenge $30 an ounce.
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.
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