A disappointing start to 2023 got suddenly worse for silver with the price sinking by $1.50 an ounce to a little above $22 an ounce after Friday’s US jobs figures proved unexpectedly strong.
The problem for silver is that as the price had largely drifted sideways this year, unlike its precious metal peer gold which had made significant gains, the plunge in price has pushed it down to levels not seen since early December.
Yet while the initial reaction to Friday’s jobs data proved negative for silver, there are still strands of optimism to extract from the current picture. A buoyant US economy, driven by policies that put the energy transition at the forefront, is likely to drive demand for solar energy even higher, boosting the need for silver which is a key component of photovoltaic cells.
Given how strong the fundamental case for silver still is, the sharp drop in the price should present an ideal buying opportunity for brave investors willing to see the broader picture in which silver demand outstrips supply.
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