19.02.2025 15:10
Silver prices are preparing to break new records due to recent economic fluctuations and volatility in global markets. The record of $34.87 per ounce is now just a matter of time before it is surpassed.
Along with the rise below, the price of silver per ounce has reached its highest level since October, aided by industrial demand. The price of the gray metal briefly exceeded $33 at the end of last week, marking its highest level since October 2024.
NEAR HISTORICAL RECORD
Records in precious metals are coming one after another. While the records seen in gold are a focal point worldwide, silver, which has more price volatility compared to gold, has also begun to challenge its historical record. The increase in silver since the beginning of the year has reached 12%. Prices peaked at $34.87 per ounce on October 22, marking a 10-year high. Some analysts say that investors in the metal are aiming to challenge the 10-year peak just below $35 per ounce. Currently, with silver selling at $32.99, there are only small steps left for a historical record in the ounce price.
RENEWABLE ENERGY DEMAND INCREASES SILVER'S APPEAL
The increase in demand for electrification and manufacturing has triggered silver purchases. Following the U.S., China's shift towards producing 357 gigawatts of solar and wind energy in 2024 is among the reasons pushing silver prices higher. Additionally, India's Oil and Natural Gas Corporation's commitment to invest 1 trillion rupees in wind and solar energy by the end of the decade, along with Indonesia's promise to add 17 gigawatts of solar energy, has further increased demand for silver.
BEWARE OF THE REVERSE WAVE EFFECT
According to market makers, if the current momentum continues, silver could challenge the $35 level. However, experts warn that high price volatility could lead to increased reverse volatility in silver, and therefore caution is advised.
Note: The content in this news article is not investment advice.