Hot Commodity Silver Sets Pace as Demand and Deficit Drive Rally
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 16 2024
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Source: Bloomberg
- Silver Outperforms Gold: Silver has surged by almost a quarter in 2024, outpacing gold and becoming one of the best-performing major commodities this year.
- Relative Value of Silver: Currently, it takes about 80 ounces of silver to buy 1 ounce of gold, compared to the 20-year average of 68, indicating that silver is relatively cheap.
- Factors Driving Silver's Rally: Factors such as record gold prices, retail interest in China, bets on lower US interest rates, and physical sales have contributed to silver's price increase.
- Industrial Demand for Silver: Silver is valued for both financial and industrial purposes, with its use in clean-energy technologies like solar panels driving up demand.
- Supply Concerns: Industrial users are depleting major inventories of silver due to rising demand, leading to potential supply shortages in the future.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
