Core Viewpoint - Silver is currently undervalued, with expectations for a continued rally driven by strong industrial demand, supply constraints, and safe-haven buying amid economic uncertainty [1][3][21]. Market Data - COMEX silver futures are trading at approximately $49.74 per ounce, with a daily high near $49.96 and a low of about $47.85. Silver spot prices are close to $49.67 per ounce [2][23]. - In India, silver futures on the MCX market are trading around Rs 1,46,850 per kilogram, closely tracking global price movements [2][23]. Demand Drivers - Industrial demand is a significant factor, with silver being essential for solar panels, electric vehicles, and semiconductors [11][12][21]. - The demand from solar energy has increased as countries invest in clean energy, while the rise of electric vehicles has heightened the need for silver in batteries and electronics [12][21]. - The technology and semiconductor sectors are also contributing to growth, as silver's properties make it vital for modern electronics [12][13]. Supply Constraints - Global mining output is struggling to meet annual demand, leading to a structural supply deficit where consumption exceeds production [14][15]. - Low warehouse inventories and high deliveries to major exchanges are tightening supply, putting upward pressure on prices [15][21]. Investor Sentiment - Investor interest in silver has surged due to economic uncertainty and currency concerns, with many treating it as a safe-haven asset similar to gold [17][18]. - The tightening silver-to-gold ratio reflects silver's stronger performance relative to gold, enhancing investor enthusiasm [18][21]. Investment Options - Silver ETFs are popular for gaining exposure, with options like iShares Silver Trust (SLV), abrdn Physical Silver Shares ETF (SIVR), and Global X Silver Miners ETF (SIL) [6][19][20]. - These ETFs provide flexibility for different risk levels, allowing investors to participate in silver's price movements without holding the physical metal [19][20]. Future Outlook - Analysts believe the current rally is supported by industrial demand, investor interest, and supply shortages, with potential for silver prices to reach $100 or more per ounce [3][21][24]. - Small fluctuations in supply or demand could significantly impact prices, indicating a critical moment for investors [21][24].
Silver price today: after gold’s powerful rally, it’s silver’s moment — Peter Schiff predicts silver price could reach $100, urges investors to dive in
The Economic Times·2025-10-09 14:03