Silver investors are on the edge of their seats as the precious metal hovers above $28 an ounce, up approximately 23% in the last two months. Following gold’s recent breakout to new records, optimism is high for silver’s potential surge in the coming months.
John Ciampaglia, CEO of Sprott Asset Management, noted, “The typical pattern for silver is — gold is the leader. [It] breaks out first, and then within a few months silver kind of takes charge and slingshots by. We’re starting to see that.” This trend has many investors excited about the potential for silver prices to soar.
In addition to price trends, investors are also eyeing silver’s growing industrial use in sectors such as green energy. Demand for silver in India is on the rise, while the use of silver in solar panels is reaching record levels globally.
According to data released by the Silver Institute, silver’s industrial applications hit a new record high in 2023 for the third consecutive year. The industry non-profit cited the green economy as a key driver of this demand, particularly in the solar panel sector.
Looking ahead, the Silver Institute expects a 1% decrease in silver supply this year, leading to the second-largest market deficit in more than two decades. The industry group also anticipates increased demand in various sectors beyond green energy, such as artificial intelligence, transportation, healthcare, and nanotechnology.
With silver last reaching a record high above $48 per ounce in April 2011, investors are keeping a close watch on the metal’s potential for another breakout.
