Si Iver's Silver 2024 Year in Review
Discover the top 10 reasons why silver performed well in the last year and five years, from industrial demand to global economic factors and investment trends.
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Here are the top 10 reasons why silver has performed well over the last year and five years:
Last Year:
Industrial Demand Growth: Increased use of silver in industries like solar energy, electronics, and electric vehicles drove demand, particularly in green technologies.
Federal Reserve Policy: Anticipation of lower interest rates in the U.S. boosted precious metals like silver as attractive stores of value.
Global Economic Recovery: Post-pandemic economic recovery spurred industrial activity, which is a significant driver of silver consumption.
Supply Constraints: Declines in mining output from key producers like Mexico and Peru created supply shortages.
Geopolitical Instability: Uncertainty in global politics and trade has led investors to favor precious metals for risk mitigation.
Over the Last Five Years:
Green Energy Transition: The global shift to renewable energy has significantly increased silver demand, particularly in photovoltaic (solar) applications.
High Gold-to-Silver Ratio: Historically high ratios made silver appear undervalued compared to gold, attracting long-term investors.
Rising Inflation and Currency Depreciation: Silver, like gold, acts as a hedge against inflation, drawing investment during periods of rising consumer prices and weaker currencies.
Record Investment Demand: The silver market saw record inflows into silver ETFs and physical bullion, driven by retail and institutional investors.
Technological Innovations: Advances in medical technologies and the rise of 5G have expanded silver’s industrial applications.
These factors highlight silver's dual role as both an industrial commodity and a financial asset, driving its robust performance over these periods.
