Following a remarkable 26% surge in March-April, silver is positioned to attain the significant milestone of $30 per ounce, driven by the momentum from gold’s exceptional performance and the robustness of copper. Despite indications of a potential technical correction, silver’s dual role as both an investment asset and an essential industrial metal for electronics and solar panels has contributed to its upward trajectory.
Philip Newman, managing director at consultancy Metals Focus, noted that silver is exhibiting characteristics more aligned with a precious metal than an industrial one. The significant decline in the gold-silver price ratio since the beginning of April underscores silver’s evolving behavior, with considerable momentum potentially propelling it to the $30 mark.
The gold-silver ratio, a key metric used to assess future trends, has witnessed a dramatic shift, reflecting silver’s current performance relative to its historical correlation with gold. As of the latest update, spot silver prices were at $28.44 per ounce, having surged to $29.79, marking their highest level in over three years.
While silver last reached the $30 price level in February 2021, sustaining this milestone for an extended period has been a challenge for the metal over the past decade. The metal’s ability to maintain this level will likely depend on a recovery in global manufacturing activity and increased investment demand from funds.