**Silver Surges to 11-Year High Amid Soaring Investment and Industry Demand**
Key Takeaways:
- The price of silver surged above $30 per ounce, the highest level since 2013.
- Demand has surged due to investor interest, industrial use, and safe-haven appeal.
- China’s manufacturing rebound and U.S. rate cut expectations are key drivers.
New York, NY — The price of silver jumped above $32 per ounce late Monday, reaching its highest level in over a decade, as investors poured into precious metals amid economic uncertainty and strong industrial demand.
Silver Tops $32 as Market Rallies on Fed Pivot Bets
Benchmark silver futures surged more than 6% on Monday, May 20, capping a rally that has gained over 25% in the last two months. Analysts attributed the spike to growing expectations that the Federal Reserve may lower interest rates later in 2024, weakening the dollar and boosting the appeal of metals priced in greenbacks. Goldman Sachs and UBS both upgraded their forecasts for silver prices, citing bullish demand pressures.
China’s Demand and Industrial Boom Fuel the Surge
Much of silver’s momentum stems from a jump in demand among industrial buyers, especially manufacturers in China, where recent factory data shows an unexpected rebound. Silver is a critical material in solar panel production, automotive electronics, and semiconductors. As green energy initiatives accelerate worldwide, particularly in Asia, the demand for industrial silver continues to climb. According to the Silver Institute, global industrial silver usage is poised to hit a record high by the end of 2024.
Investment Demand and Geopolitical Risks Add Pressure
Investors are also turning to silver as a safe-haven asset amid persistent geopolitical risks in the Middle East and Ukraine. Heightened inflation risks and uncertainty around U.S. fiscal policy have led to a broader move into commodities. Silver-backed ETFs like the iShares Silver Trust (SLV) recorded net inflows of over $400 million in the past three weeks, reflecting growing investor appetite for precious metals exposure.
Frequently Asked Questions
Q: Why is price of silver trending?
A: Because it hit an 11-year high, driven by demand from investors and industrial sectors, as well as Fed rate cut expectations.
Q: What happens next?
A: Analysts expect continued volatility, with prices possibly testing $35 per ounce if bullish momentum continues into summer 2024.
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