The bullion is not the only precious metal that continues to shatter fresh record high after fresh record high from robust inflows from weary investors that seek safety, silver is as well.
The precious metal that also has industrial properties, scaled for the first time in its trading history the $50 per ounce mark yesterday, surpassing the 1973 and 2008 former peaks with strong momentum, as a concoction of bullish catalysts sent the bears running for cover.
There are currently four key drivers behind the demand surge: silver’s relative affordability as gold trades above $4,000 per ounce, relative shortages of physical silver, booming industrial use in EVs, batteries, solar panels, and data centres, and renewed interest from central banks and institutional investors.
Silver futures are indeed trading at steep premiums in international markets, and its price has almost doubled since the start of the year, tracking gold’s rally loyally and appreciating rapidly, as investors treated the metal as a sympathy play. The industrial metal is up by over 75% compared to the shiny metal’s equally impressive 50%+ gain to date.
A macro theme that also deserves more attention, are the rumoured plans that the BRICS alliance may also include silver (and other metals) instead of only gold, for their multi-currency settlement framework.
These nations seek to challenge greenback’s superiority and circumvent the global hegemon’s financial infrastructure, by building a system where their national currencies will be valued relative to each other, with gold (and other metals?) serving as the underlying physical benchmark. In a sense transact with each other using by gold-backed (bundle of metals-backed) currency and steer away from paper/fiat money, which is subject to endless dilution and devaluation by policies.
Technical Analysis
Silver Chart – Silver goes supernova, lifted by superb momentum and claims a new all-time record high
Resistance: 51.20 (R1), 52.50 (R2), 53.80 (R3)
Support: 49.54 (S1), 48.40 (S2), 47.30 (S3)