Silver’s stellar run has driven the price up close to $24 an ounce as the metal benefited from haven-seeking investors amid the US banking crisis.
Yet while gold’s outlook for the month ahead looks challenging, with the prospect of continued monetary tightening and investor confidence returning now that the banking crisis looks to be contained, silver investors have more reason to be hopeful.
While silver does have safe haven qualities, it is far more exposed to industrial demand than its precious metal peer, gold. On this front, silver looks in rude health with the metal heavily needed to sustain the energy transition away from fossil fuels and towards renewable sources with silver’s conductive qualities required in photovoltaics for solar energy and in batteries for electric vehicles.
This positive industrial outlook has held true throughout 2022 and this year but so far the metal’s strong fundamental case has been outweighed by the Federal Reserve’s aggressive monetary policy.
While the Fed’s interest rate hikes are far from over, the peak is nearing and with so much of this now priced in, this could finally be silver’s moment to sustain its March rally into April and push on towards $26 an ounce and the highs it achieved in March last year.
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