Silver Soars, Surpassing Gold's Shine?
Silver prices continue to trend upward, supported by expectations of a Fed interest rate cut and a weak US dollar. Tight supply conditions and a stock shortage mean that every price correction is used by investors to buy again, thus maintaining the momentum of the silver rally.
As a precious metal with the dual function of both an inflation hedge and a driver of industrial growth, silver holds greater appeal than gold. This year, its price has risen by around 40%, outperforming gold and making it one of the best-performing assets for 2025, as funds have poured into silver-based ETFs.
Silver ETF holdings have increased for seven consecutive months through August, the longest streak since 2020. This has further reduced inventories in London and driven up metal rental costs. Furthermore, strong industrial demand from the clean energy and solar sectors has projected the silver market to be in deficit for the fifth consecutive year.
Technically, silver has broken through key resistance at $40, triggering massive buying. Its often more volatile nature than gold makes the rally potentially more rapid. Although volatility is expected to increase, market conditions still offer a breath of fresh air for investors optimistic about silver. (ayu)
Source: Newsmaker.id
