Posted 2nd August 2023

Silver Price News: Silver Holds Above $24 as Markets Digest US Credit Downgrade

Silver is just about holding above $24 an ounce as markets digest Fitch Ratings’ cut to the US credit rating. 

As ever with silver, investors have to weigh up the metal’s haven appeal against its industrial demand outlook in contrast to its precious metal peer gold, which is more of a pure-play haven asset. While this downgrade of the US credit rating isn’t going to materially impact the global reliance on the US economy, it has already delivered a jolt to market confidence. 

Much of the case for silver climbing higher than its current $24 level is built around the metal’s outstanding fundamental case with silver’s excellent conductivity driving its healthy demand outlook for many years to come as the world requires huge amounts of electricity in the switch away from fossil fuel generated power. Therefore any suggestion that industrial output will be crimped, as the Fitch downgrade could imply, is potentially damaging for silver.

However, the fact that silver is embedded within industries, notably solar energy, that are likely to have healthy demand irrespective of the global economic outlook, should enable it to brush off the Fitch news. Instead this period could prove a consolidatory one to enable silver to stabilise its support before a fresh climb towards $25 an ounce.  

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