Silver Investors Cling on to Hopes Price Has Found its Bottom After Punishing Month

Silver’s brief recovery earlier in the week proved fleeting with the price plunging again yesterday to below $21 an ounce to the lowest level since July 2020.

So far in early Friday trading, silver is making tentative gains in line with small corrections seen on equity markets after a series of huge drops over the course of the week that has left the S&P 500 Index on the cusp of a bear market.

Live Silver Price – $/oz

As has been stated numerous times in this commentary, the fundamental case for silver remains strong with industrial demand likely to remain strong for the foreseeable future as countries seek to decarbonize their economies and increase solar energy output, which relies on silver for the photovoltaic cells.

Yet this bullish demand outlook has been overwhelmed by macroeconomic concerns where sustained inflation has forced central banks to adopt hawkish policies as they try and prevent this from escalating into recession. Silver has found itself continually punished for about a month now but for a brave investor willing to look over the horizon, these low levels surely present a buying opportunity. 

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 greenwashing 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