Silver’s attempts to climb back above $19 an ounce have yet to prove successful, further underlying the lack of meaningful support for the precious metal.
Today has brought fresh inflation data from the UK that shows that prices are continuing to rise at an ever faster rate with the peak still not yet reached. While inflation would typically be a supportive factor for silver, this has been heavily outweighed by the actions taken by central banks to try and bring runaway inflation back under control.
Live Silver Price – $/oz
Next week the Federal Reserve is almost certain to raise interest rates by another 75 basis points while today’s UK inflation data has increased the likelihood of the Bank of England implementing its first 50 basis point hike since the bank gained independence from the UK government.
These ever-increasing interest rates have diminished silver’s appeal due to its lack of yield with the fall in price from the highs achieved as recently as mid-March both spectacular and painful for holders of silver. The glimmer of hope is that the declines have certainly slowed with signs that the price may be bottoming out…. But then those words have been said before and proven false dawns!
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.
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.