Posted 10th February 2023

Silver Price News: Silver Endures Tough Week To Sink Down to $22

market analysis silver

Silver has endured a tough week to see it barely holding above $22 an ounce as traders and investors revise how many more interest rate hikes the Federal Reserve is likely to implement.

It was the switch to an aggressive series of interest rate hikes by the Fed back in April that sparked silver to endure a multi-month slump and it is the prospect of the US central bank continuing to increase its benchmark rates for longer than previously expected that has pushed silver’s price down to its lowest level in two months.

Silver yet again seems to have more aggressive punishment meted out to it compared with its precious metal peer gold. While gold has effectively lost its gains made since the start of the year with the price having surged ahead of the current macroeconomic picture and instead trading on future sentiment, silver has had a much more conservative start to the year having effectively traded sideways. Yet despite not looking as overpriced as gold, it has still endured a sharp sell-off this week.

When the dust settles on this latest market reaction, silver investors can take assurance that the fundamental outlook still remains very healthy for the metal. There is ever-increasing demand from a world that needs and wants to significantly ramp up solar energy output, something that requires significant quantities of silver as conductors in the photovoltaic cells. So today’s cheaper price could prove an attractive point for existing holders to top up their exposure and for new entrants to dip their toe into having silver within their portfolio.


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