The price bounced back to $21.867 in the following two days but then went on the decline, closely following the trajectory of the gold price. The DXY reached 105.52 on 14 June – its highest level since December 2002 – which saw the silver trading price drop to $20.936 per ounce. But while the market traded between $24 to $26 until mid-April, it began to sell off sharply later in the month as the dollar strengthened. Silver traded up from $22.30 per ounce in late January to $26.90 per ounce in early March, a peak so far this year, as the market responded to the Russian invasion of Ukraine. Higher interest rates tend to be bearish for precious metals, as investors opt for interest-bearing savings accounts and other assets that generate guaranteed returns. The silver spot price fell from $24 to $23 per ounce at the start of the 2022, as central banks combatted inflation by rapidly raising interest rates. ![]() High inflation rates around the world were expected to support investment demand in 2022, as precious metals typically retain their value at times when rising prices erode the purchasing power of fiat currencies. The market saw its first deficit since 2015, with a shortage of 51.8 million ounces – the biggest shortage since 2010. Sales of silver coins and bars for investment jumped by 36% to 278.7 million ounces, the highest level since 2015, “as retail investors in North America and Europe, motivated by safe-haven and inflationary concerns, took advantage of periodically lower silver prices to purchase coins and bars,” said the Silver Institute. Physical demand is expected to rise by 5% to another record in 2022. There were several trends driving up silver demand, including strong consumer electronics demand amid the transition to remote working, investment in 5G infrastructure and rising silver use in the green economy – especially in solar photovoltaic (PV) panels. Consumption rose by 9% to 508.2 million ounces, according to the Silver Institute. Physical silver demand climbed to a record high in 2021, led by an all-time high in industrial applications – silver is the best conductor of electricity, so it is often used in high-end applications. In addition to investor sentiment, the silver price trend has found support from its growing use in industrial settings, which account for roughly half the metal’s annual demand. ![]() Past performance is not an indicator of future results. The price then jumped to an eight-year high in February 2021, briefly touching the $30 per ounce psychological level, as the market attracted the attention of retail investors. The silver price reached a $28 high in August 2020 and ended the year around the $22 mark. The silver markets have climbed from the $12 per ounce lows reached at the start of the Covid-19 pandemic, as investors have bought physical precious metals and financial instruments as safe-haven assets during ongoing economic uncertainty. ![]() Silver price history: Macro volatility is key What are the factors affecting the silver market and where should investors expect the market to move next? In this article, we look at some of the latest silver predictions from analysts. Silver underperformed gold throughout 2022, and has continued to do so this year in spite of its upturn. Precious metals markets have been aided by a weakening US dollar, with the US Dollar Index ( DXY) declining by 2.5% year to date ( YTD) and over 10% in the past six months to 100.88 at the time of writing.
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