Demand Surges, Supply Crisis: Will Silver's Rise Beat Gold?
Silver prices this morning are still consolidating between the $37-$38 area at the opening of Asian markets. Several factors could drive silver prices to continue rising, including demand and renewable energy.
Current global silver market conditions indicate a five-year supply deficit, with an estimated shortfall of 149 million ounces this year. Despite increasing mining production, surging demand from the industrial sector is unstoppable.
The largest demand for silver comes from the renewable energy and electric vehicle industries, where solar panels use nearly 200 million ounces of silver annually, and electric cars require five times more silver than conventional cars.
Furthermore, the rapid growth of the AI, semiconductor, and digital device sectors is driving demand for this metal. Investors are also starting to look again to silver as a safe haven amid global uncertainty, including geopolitical tensions and persistent inflation.
Technically, silver prices are trading around US$38 this morning, with strong support at US$37.60 and immediate resistance at US$38.40. The RSI indicator indicates that buying power remains dominant, although there is potential for short-term consolidation.
Analysts estimate that if prices break through the US$38.40–39.00 level, silver has the potential to strengthen to US$40–41 in the near term. However, a healthy correction is possible, given the sharp price increases over the past two weeks.
"The still-high gold-silver ratio indicates that silver has not yet reached its fair valuation. This could be an attractive opportunity for medium-term investors," said a market analyst from Gainesville Coins on Thursday morning.
Meanwhile, a report from FXEmpire noted that short-term technical signals are still mixed, but the weekly trend remains bullish.
The combination of a supply deficit, continued rising industrial demand, and investor interest in precious metals assets are the main drivers of silver prices currently. While there is a potential for a short-term technical correction, the medium- to long-term outlook remains positive.
Source: Newsmaker.id
