Silver has climbed above $23 an ounce, a level last seen at the end of January, as the precious metal draws support from investors seeking out its haven qualities and lack of counterparty risk.
Silver hasn’t enjoyed the same price surge as its precious metal peer gold but has still gained almost $3 an ounce in less than two weeks. This lift was much needed after silver had so far failed to gain much traction in 2023 despite the metal’s strong fundamental case in which demand is outweighing supply.
The major headwind for silver has been the prospect of the Federal Reserve continuing to raise interest rates for longer than anticipated so the fact that the price has continued to make gains in a week in which the Fed added another 25 basis points to its benchmark rate underlines the growing support for silver.
Yet even with the recent gains silver remains below the level it started the year at, illustrating that there is still plenty of scope for further gains, particularly if investors once again buy into silver’s crucial role in the energy transition where its conductive qualities see it used in photovoltaics for solar energy and in the batteries of electric vehicles.
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