The much-anticipated 2023 rally for silver is yet to emerge with the price holding comfortably above $24 an ounce but still not showing any clear movement higher.
The conditions still seem ripe for silver to carry on where it left off in the final quarter of 2022 and keep on climbing towards last year’s high above $26 an ounce. Yet despite gold, with which silver enjoys a close correlation, making significant gains already this year, silver has yet to join the party.
The demand picture remains as robust as ever with the fact that silver is a key component in two of the major investment themes, the energy transition and the technology revolution, should mean it stands in good stead irrespective of the global economic outlook. And now with fears of a sustained recession starting to recede with inflation looking to have peaked and economic indicators holding up well, this should provide a further boost to silver.
Silver seems held by a psychological fear of the price moving too much higher given that the metal has only traded above $25 an ounce on a handful of occasions in the last 10 years. Once this mental barrier is broken down, there is nothing to stop silver racing up to $30 an ounce and break fresh ground.
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