Silver’s recovery has once again proven short-lived with the price sinking back towards $23 an ounce in the face of a stronger US dollar and ahead of the latest jobs data that will help determine the Federal Reserve’s next step with its interest rate moves.
This week’s dip in the silver price illustrates how prone the metal is to macroeconomic rhetoric as its fundamental case remains as strong as ever with silver in strong demand for many years into the future as a key component of the energy transition.
Today’s US jobs data is expected to show more people continue finding employment in the world’s largest economy, which will be supportive for silver’s industrial demand. Therefore the price dip prompted by a downgrading of the creditworthiness of US debt could present an opportunity for long-term silver investors to top up their holdings or for new entrants to dip their toes in at a more favourable price point.
Silver’s long-term trajectory continues to look upward with metal in greater demand than there is supply to cover it but the journey up towards the high of this year and last year, a little above $26 an ounce, will continue to have these macroeconomic bumps along the road but should still ultimately reward the patient investor.
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