Silver trades above $29 for first time in 3 years

Silver prices rose in European trade on Friday on track for the second profit in a row, moving above $29 an ounce for the first time in three days amid strong demand on precious metals due to worsening geopolitical tensions in the Middle East.

The White metal is on track to hit ten-year highs on strong demand from retailers, especially as silver remains far from its true value compared to gold, which recently hit a record high above $2400. 

Prices

Silver prices rose 2.8% to $29.23 an ounce, the highest since February 2021, with a session-low at $28.39. 

Prices closed up 1.8% yesterday, the fourth profit in five days following weak US producer prices data. 

Weekly Trades 

Silver is up 6% so far this week, on track for the third weekly profit in a row. 

Geopolitical Tensions 

The Wall Street Journal said that Israel is preparing for an Iranian attack in the next two days after its presumed air strike on the Iranian consulate in Syria. 

The Israeli government warned that if Iran attacked Israel, the Israeli army would respond with an attack on Iranian territory. 

Iran’s supreme leader Khamenei threatened to punish Israel, after accusing it of striking the Iranian consulate in Syria last week, killing 7 military officials. 

Retailers 

As retailers seek assets to guard against potential risks as global central banks change their policies to a more accommodative direction, it’s clear that silver is becoming an excellent under-valued choice. 

The recent silver surge tipped off many retailers that silver remains far from its true value compared to gold, which is trading at record highs. 

Gold hit a record high of $2400 an ounce on April 12, while silver is very far away from its record high of $49.78 scaled in April 2011, in turn triggering strong demand on the white silver for its potential hidden value.  

Historically, silver had usually taken widen movement arcs upside and down compared to gold, however recent times were an exception, with retailers now paying more attention to the missing silver value. 

Silver Forecasts 

The Silver Institute expects 2024 to be an excellent year for the white metal, with prices potentially hitting 10-year highs.

The Institute expected total global demand to reach 1.2 billion ounces in 2024, the second highest on record.