2024-04-25 10:59:17
Record gold prices, which have risen almost non-stop since the start of this year, have dragged silver up as well.
Global demand is expected to reach 1.2 billion troy ounces this year. This will be the second highest historical level, according to a report by the international association Silver Institute, cited by CNBC.
Silver is primarily used for industrial purposes, most commonly in the manufacture of automobiles, solar panels, jewelry, and electronics.
Silver is going to have a great year, especially in terms of demand.” Michael Di Rienzo, executive director of the Silver Institute, expects prices to reach $30 an ounce. That would mark a 10-year high, according to London Stock Exchange (LSEG) data. Silver last reached such quotations in 2013.
The association’s report also said that increased demand from India will lead to higher jewelery sales. A recovery in the consumer electronics trade is also forecast, which will also boost demand for precious metals.
Their prices, especially gold and silver, usually move in the opposite direction of interest rates – when they go up, demand for the metals decreases and they become cheaper because investors are directed to buy bonds and government securities.
The expected decrease in interest rates from the middle of this year is once again directing interest to metals.
Gold, for example, crossed the psychological level of $2,000 per troy ounce in the fall of last year. And from the beginning of this, a rather significant rise in his quotations began. At the end of February, they reached above $2,200, and at the beginning of April, above $2,300. Yesterday, prices of the precious metal exceeded $2,343.
According to a new report from the Australian Department of Industry, the average price of gold in 2024 will be around 2020 reports per troy ounce, up 6 percent from the previous forecast.
Analysts expect the rise in prices to continue due to the end of interest rate hikes and the easing of monetary policy by central banks around the world. This would also lead to a depreciation of the US dollar.
American bank JPMorgan Chase recently announced that the price of gold has the potential to reach $2,500 per troy ounce this year. Another US bank – Goldman Sachs, predicts that the average price for this year will be 2,180 dollars, and at the beginning of next it will rise to 2,300 dollars.