Core Viewpoint - The recent surge in silver prices, reaching a 14-year high, is primarily driven by expectations of continued interest rate cuts by the Federal Reserve, alongside strong industrial demand and a supply-demand imbalance in the silver market [3][5][7]. Group 1: Silver Price Performance - On September 26, international silver prices surpassed $46 per ounce, marking a 14-year high since 2010 [3]. - In 2024, the average silver price is projected to be $28.27 per ounce, compared to $23.35 per ounce in 2023 [3]. - Over the past six months, spot silver has seen a cumulative increase of over 30%, with a year-to-date rise of 59%, outperforming most commodities and gold, which rose by 43% [3][5]. Group 2: Economic Indicators and Federal Reserve Policy - Recent economic indicators show that U.S. non-farm payrolls increased by only 22,000 in August, significantly below the expected 75,000, with the unemployment rate rising to 4.3%, the highest in nearly four years [5]. - The non-farm employment data has been revised down by 911,000 over the past year, averaging a monthly shortfall of 76,000 jobs [5]. - These labor market weaknesses provide a strong basis for the Federal Reserve to consider further interest rate cuts, with expectations of a total reduction of 75 basis points this year and one cut next year [5][6]. Group 3: Supply and Demand Dynamics - Industrial demand for silver remains robust, driven by sectors such as photovoltaics, electric vehicles, and semiconductors, leading to a supply-demand gap [7]. - Global silver supply is expected to grow by 2% to 1.0306 billion ounces in 2025, while total demand is projected to decrease by 1% to 1.1483 billion ounces, resulting in a supply shortfall of 117.6 million ounces [7]. - The low inventory environment and persistent supply-demand imbalance amplify price volatility, with speculative inflows and fundamental support contributing to silver's stronger price resilience compared to gold [7]. Group 4: Future Outlook - The ongoing transition to green energy and the global digitalization process, combined with accommodative monetary policy expectations and geopolitical uncertainties, are likely to continue supporting silver prices [7]. - Silver is expected to maintain its medium to long-term investment value, with potential for further price increases [7].