Silver Soars! The Secret Behind the Historic Price Surge
The silver market is in the spotlight due to its increasingly strong fundamentals. Silver prices have broken through USD 90 per ounce, a historic high, after global economic data showed low inflation and expectations of interest rate cuts increased. Demand for this metal remains high amid geopolitical risks and strong investor interest.
One key factor is the imbalance between supply and demand. Global silver production has not been able to keep up with demand, particularly from modern industrial sectors such as solar panels, electric vehicles, and electronics. Supply is also hampered because most silver is produced as a byproduct of other metal mines, making it difficult to increase output quickly.
Industrial demand for silver continues to grow rapidly. This metal is a crucial component in clean energy technology and electronic devices due to its unique electrical conductivity and properties. The solar panel sector uses large amounts of silver, while demand from the automotive and technology sectors continues to increase.
Beyond the industrial sector, investors also view silver as a hedge against global economic uncertainty. Expectations of interest rate cuts make non-yielding metals like silver more attractive for investment portfolios, bolstering demand in the capital markets.
Although long-term fundamentals support an uptrend, the silver market remains vulnerable to price volatility. Factors such as real yields, global economic conditions, and interest rate fluctuations can influence investor sentiment. However, tight supply and strong industrial demand keep many analysts optimistic about silver's future prospects. (az)
Source: Newsmaker.id
