Silver’s slide shows no sign of stalling with the price of the precious metal now barely above $22 an ounce, having been trading comfortably above $25 an ounce barely a fortnight ago.
Confirmation of the Federal Reserve implementing its biggest rate hike since 2000 as well as hawkish rhetoric and rate increases by other central banks in Europe has made silver a less attractive asset versus other haven assets such as bonds, whose returns will increase in line with central bank rate hikes.
Live Silver Price – $/oz
With a large portion of fear trading over the war in Ukraine having been unwound and with the Fed, the Bank of England and shortly the European Central Bank all set to raise interest rates in coming months, it is hard to see the short-term factor that will finally provide support to silver.
That said, the fundamental case for silver remains strong with demand for the metal in industrial applications such as technology and photovoltaics remains strong following on from a record year in 2021. As such, silver now seems massively undervalued and these low prices present an opportunity for a brave investor to bolster their silver holdings.
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