Global Stockpiles Dwindle, Silver Sought by Investors and Industry
Silver prices traded steadily around $37.85 per ounce during Thursday's Asian trading session. Year-to-date, silver prices have surged by around 21%, reflecting a sustained positive trend since the beginning of the year.
This commodity price increase was driven by tight physical supply in the global market, including a significant divergence between the spot market and futures contracts in the US—an arbitrage phenomenon that has squeezed the availability of the metal in the hands of investors and traders. Bloomberg data also showed an influx of approximately 1.1 million ounces of silver into ETFs, further reducing the freely tradable supply.
Amid these fluctuations, analysts warned that upward momentum could slow as investors revised their expectations for potential price increases. Commerzbank stated that although silver's rally had shown superior performance compared to gold, it still lacked its "safe haven" function, and further increases were not fully justified. Fundamentally, industrial demand—particularly from the solar energy sector—is predicted to remain strong and could boost prices through the end of the year. Several institutions estimate prices could reach $50 per ounce, with a conservative target range of $38-42.
Source: Newsmaker.id
