Are silver’s days of seclusion coming to an end?


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Silver had been off the investor’s radar for a while after the unsuccessful ‘anarchist purchases’ in February and the sudden declines last month. However, in recent days, silver has started to gather its attention again with the mixed signals from the Fed. Fund manager Baker Steel Capital argues that the white metal has bottomed out in the downturn and believes that ‘silver is poised to take the stage again’. In the analysis prepared by the financial institution, it is noted that it is important that prices remain above the critical support level of $ 23 from a technical point of view. The analysis states: “It has yet to hit its all-time high: We believe precious metals are in the midst of a long-term uptrend driven primarily by the expanding money supply, persistently low and negative real interest rates, rapid debt growth, and that silver’s recovery may have only just begun. Historically, silver rises when gold hits new highs, and so the fact that silver has yet to retest all-time highs this cycle is an indication that the metal has room to maneuver in the future.”

“Gold rises if it watches housing prices”

Rising house prices in the USA may give clues about the path that gold will follow. According to an analysis by Sunshine Profits, house prices in the US are experiencing the fastest increase since the 2000 housing boom that resulted in the financial crisis. This means rents will rise significantly in the coming years, fueling inflation as rents are included in consumer price indices. Meanwhile, gold, which tested the $1,835 level but failed to cross this threshold, fell back below the psychological $1,800/ounce level. If this scenario is maintained, a pullback towards the $1,750-1,730 support area may come to the fore in the short term, according to analysts. Still, ANZ’s strategists reiterate their positive stance on gold over the next three months and think $1900 can be tested.

Playing ‘decline strategy’ in palladium

For the first time in 15 years, non-trading net positions in palladium futures switched to the short side. Net positions in palladium futures are at their lowest since February 2021 and before that, nearing zero in March 2020. According to the report prepared by Hereaus, there was a steep rise in palladium prices just after the increase in short positions on the said dates.

Solar photovoltaic capacity is growing rapidly

Solar photovoltaic (PV) capacity, a major use for silver, is growing rapidly as energy demand grows, governments offer support, and environmental awareness among consumers grows. Projections for PV development point to an increase of 180 percent in the next 10 years, 459 percent in 20 years, and 720 percent in 2050. Also, the auto industry currently uses 55 million ounces of silver annually and demand is projected to rise to almost 70 million ounces by 2030.

That rhodium miners are the #1 money door

Rhodium, the world’s most expensive precious metal, has become the #1 revenue stream for major platinum miners after the rapid rise in its price. Although the metal has slumped from its March peak, rhodium still accounts for 45 percent of first-half revenues for Anglo American Platinum, one of the world’s largest miners. That’s even more than the company’s revenue from platinum and palladium. Its subsidiary Anglo American’s revenue from the silvery-white metal exceeded its subsidiary De Beers’ diamond mining and copper operations in Chile and Peru. Due to the increasing demand, prices had reached $30 a dollar in March and became 17 times more expensive than gold.

In platinum, ‘electroform method’ in jewelry can increase sales

The latest report titled “Platinum Jewelery Business Review” published by Platinum Guild International (PGI) shows that platinum jewelery sales are increasing in many markets. Looking at the US market, platinum jewelry sales among PGI’s strategic partners in the second quarter of the year doubled compared to the same period of the previous year, while ounce sales increased by 48 percent. In the same period, the Japanese jewelry market increased by 70.7 percent on a piece basis, while platinum jewelry sales also recovered by 68.5 percent. PGI points out that platinum, which uses electroforming technology especially in the second half of the year, can be a prominent issue and support sales.


Source: Dünya Gazetesi by www.dunya.com.

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