Silver climbs above $40 as momentum builds

Silver prices rise to their highest since 2011.
By Kyle Rodda
Source: Shutterstock

Silver has surged above $40 per ounce for the first time in almost 14 years, marking its strongest level since 2011. 

Silver climbs above $US40 per ounce, highest since 2011

The latest move higher in silver reflects a combination of industrial and safe-haven drivers. Around 60% of global silver demand is tied to industrial uses, particularly in electronics and clean energy technologies such as solar panels. With the global energy transition accelerating and new applications emerging in artificial intelligence, defense, and medical equipment, demand for silver has remained resilient.

On the supply side, silver output has struggled to keep pace. Annual demand has climbed above 1.1 billion ounces in recent years, while supply has been broadly stagnant, creating a structural deficit that has supported higher prices. This tightness has been compounded by the relative weakness of the US dollar, which has made silver more attractive to international buyers.

Geopolitical and trade tensions have added another layer of support. With investors seeking protection against heightened uncertainty and persistent inflation risks, silver has benefited as a lower-cost alternative to gold.

Sentiment supports silver as bullish momentum increases

Looking ahead, the outlook for silver will depend on a balance of industrial demand, supply constraints, and broader macroeconomic conditions. Strong momentum in renewable energy investment and electronics production points to continued growth in consumption. Unless mine output and recycling expand meaningfully, supply-demand dynamics are likely to remain supportive of elevated prices.

Market sentiment also appears constructive. Futures positioning has shown rising interest from speculative traders, while the gold-to-silver ratio has narrowed, signalling relative strength in the white metal compared to gold. 

Global growth trends and monetary policy will remain crucial. Softer economic data or a shift toward looser central bank policy, particularly in the United States, could bolster precious metals by driving down real yields and weakening the dollar. Conversely, signs of stronger growth that reduce safe-haven demand, or any improvement in silver supply, could act as headwinds.


(Source: Trading View)
(Past performance is not a reliable indicator of future results)

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