Over the past couple of months, we’ve witnessed an unexpected upswing in silver prices reaching an all-time high. However, with silver taking a swan dive in recent days, several investors and market enthusiasts are left to ponder, Is this the apex for ‘silver bull’ or mere breather before a second wind?
The stunning upswing can be largely attributed to market volatility, primarily forced by global macroeconomic uncertainties exacerbated by the ongoing pandemic crisis. Silver, revered as both an industrial and hedging asset, has been appealing to a gamut of investors.
Yet lately, it seems silver’s moment under the spotlight may be taking a hiatus. Reasons could range from economic recovery, an uptick in the U.S. dollar, to newly discovered vaccine optimism, creating a ripe environment for risk-on sentiment.
Despite the current lull, numerous market experts suggest it might be hasty to write the obituary for silver. Many foresee an impending demand surge from green energy sectors, citing silver’s crucial role in photovoltaic cells in solar panels. Furthermore, monetary policy expectations with the potential of inflationary pressures could also work in silver’s favor.
In conclusion, the flight of silver is fraught with fluctuations and guesses. The recent slump may not necessarily spell doom, as the brightness could surface from corners least expected. Read More
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