“Silver’s strength is driven by a combination of safe-haven demand and favorable macroeconomic trends,” said a commodity analyst at UBS.
Rising demand and strong performance
Investor interest in silver has been boosted by its performance against gold, as well as its increasing role in sustainable energy technologies. The demand for silver for the production of solar panels is expected to increase by 20% this year.
Analysts predict that China will exceed its forecast for solar panel installations by 2024, further increasing silver’s appeal.
“If silver can sustain prices above $32 per ounce, we could see even more upside potential,” analysts suggest.
Last week, silver hit an 11-year high of $32.71 before retreating, but continued strength could lead to additional gains as demand for renewable energy grows.
Impact of Chinese stimulus measures on silver and gold
While silver is benefiting from China’s economic measures, these policies have led investors to move away from traditional safe havens such as gold, leading to weaker demand for gold. However, geopolitical uncertainty could still fuel short-term volatility in precious metals.