The price of silver has increased by 31% since the beginning of the year (for comparison, the price of gold has increased by 27%).
Investors have another conservative asset.
Concerns about US trade policy also contributed to the rise in precious metal prices. Mexico, the largest producer of silver and a key supplier of the precious metal to the American market, faced the threat of imposing import duties on the United States in the amount of 30% from August 1. According to the terms of the agreement between the United States, Mexico and Canada, silver is not subject to the new fees, but some traders fear that these exceptions may be lifted.
"Demand for silver is currently growing due to the threat of trade wars, as well as the fact that gold bars have become inaccessible to many," said Priyanka Sachdeva, an analyst at Phillip Nova Pte. Gold has already increased significantly in price and is now expensive, she added, noting that investors are increasingly considering silver as a cheaper alternative to gold.
Silver prices rose to their highest in 13 years
Silver , Gold , Precious Metals
The price of silver has increased by more than 33% this year. During the same time, gold has risen in price by only 28%. At the beginning of the year, concerns about the aggressive trade policy of US President Donald Trump provoked a sharp increase in gold and silver supplies from London to the United States, which led to higher prices. In addition, silver is not only a safe haven asset, but is also used in industry, in particular in the production of solar panels. According to the industry group The Silver Institute, the market has been in a state of deficit for the fifth year.
Indian investors, who are traditionally fond of accumulating gold, are increasingly paying attention to silver, as its profitability has exceeded that of gold this year.
The increase in the value of silver at the moment is due to speculative flows, while the metal is moving above technical resistance levels, said Giovanni Staunovo, commodity market analyst at UBS.
ANZ analysts believe that the silver price going beyond the range of 35-37 per ounce may provoke new technical purchases and lead to an increase in silver prices to 40 per ounce.
