Silver's rise and gold's contraction highlight a potential capital shift, with SIL ETF moving above recent highs. SIL's holdings do not show significant signs of overvaluation, especially from a forward-looking perspective. The macro outlook appears to remain positive for the precious metals sector, and silver demand may potentially benefit from gold's “excesses”.
Market volatility continues to push gold higher, while industrial demand could sway silver's price moving forward. Given this, investors may want to use caution if looking to add silver exposure.
UBS is standing by its bullish call on silver, saying recent price weakness triggered by market turmoil over Donald Trump's new tariff policies is likely to be short-lived. Silver briefly slipped below $30 an ounce this month as investors reacted to fears of a global slowdown and rising trade tensions.
$28.31 low holds as silver rebounds from value zone; bulls now watching for a 50% retrace toward $31.45, but macro headwinds still dominate.
"The thing about the stock market, and you guys know this well, is it's the only store in town where people run out the door when things go on sale because they're afraid. And I totally get that.
Neils Christensen has a diploma in journalism from Lethbridge College and has more than a decade of reporting experience working for news organizations throughout Canada. His experiences include covering territorial and federal politics in Nunavut, Canada.
While gold outperformed silver this past year, silver is still outperforming gold this decade. Silver demand is increasingly being driven by growth coming from industrial uses, particularly in the booming solar industry. Industrial demand for silver is less volatile than investor-driven demand, supporting more stable demand growth.
Tariffs slam silver market as industrial demand outlook weakens. Key support at $32.53 under pressure with $31.81 the next target if broken.
Ernest Hoffman is a Crypto and Market Reporter for Kitco News. He has over 15 years of experience as a writer, editor, broadcaster and producer for media, educational and cultural organizations.
Jeremy Szafron joins Kitco News as an anchor and producer from Kitco's Vancouver bureau. Jeremy is a seasoned journalist with a diverse background covering entertainment, current affairs and finance.
Neils Christensen has a diploma in journalism from Lethbridge College and has more than a decade of reporting experience working for news organizations throughout Canada. His experiences include covering territorial and federal politics in Nunavut, Canada.
Caleb Silver says we're no where near a recession, but market sentiment is at some of the lowest levels he's seen in years. In the tech sector rotation, he says individual investors are buying the dips on some of the biggest mega-cap tech stocks.