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SILVER INFO:
The silver price is running due to a combination of a physical supply squeeze in the London market, which limits available metal, and expectations of potential U.S. Federal Reserve interest rate cuts, which can make non-yielding assets like silver more attractive. Increased speculative and industrial demand, coupled with a potential annual deficit where demand outstrips supply, further contributes to price pressure.
Key drivers for the rising silver price
as at todays date:
Physical market squeeze: There are reports of a physical squeeze in the London market, similar to past events that drove prices higher. This indicates that the supply of readily available silver is tightening.
Potential interest rate cuts: Market sentiment suggests the U.S. Federal Reserve may cut interest rates. Lower interest rates make non-yielding assets like silver more appealing compared to interest-bearing investments.
Increased demand: There is strong demand for silver, driven by both industrial applications and investment, which may be contributing to an annual deficit where demand exceeds supply.
Market volatility: Choppy price action points to high implied volatility. Historically, dips have been met with strong buying interest, and supply constraints have proven to be a powerful price factor.
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