Posted 3rd October 2022

Silver Remains Above $19 as Long-Term Demand Balanced Against Rate Hikes

silver bar stack polished

Silver continues to trade above $19 an ounce as investors grapple with the impact of central banks around the world hiking interest rates with a fundamental outlook for a metal that will be in big demand in the energy transition and looks overly cheap as a result.

Silver’s trading picture from September onwards has seen any significant price dips caused by hawkish macroeconomic data or announcements have been followed by a quick mini-recovery. As a result, the metal has traded within the $18-$20 an ounce range for the last month and may well continue within that band for the foreseeable future with rate hikes putting a ceiling on prices while the need for silver in the future will ensure it doesn’t fall below $18. 

The end of this week brings the latest round of US employment figures and given silver’s greater industrial exposure compared with its fellow precious metal, gold; it will be important for silver investors to see a US economy that remains healthy to support future demand. 

While the current trading activity may be subdued, given the torrid run silver endured from April through to September, this consolidatory period will still be cherished by silver investors who can gain confidence that the lows are now behind them.

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.