Silver on the market: price record for the last 10 years

The price of silver on Monday, May 17, reached its maximum in the last 10 years, exceeding the mark of $30 per ounce (28.4 grams). According to Bloomberg, the precious metal rose to the level of $31.49 per ounce, corresponding to an increase of 6.5%. The price of silver has increased by 32% this year, making it one of the best performing commodities on the market.

According to information from Bloomberg, such sharp increases in silver prices have become possible thanks to the growing interest of investors, a favorable macroeconomic environment and a projected shortage in the market. Against the background of a general improvement in sentiment on the metal markets, silver prices rallied thanks to the intensification of investment demand.

According to Blue Line Futures' Phil Strible, the current situation is reminiscent of the dynamics of last year, when retail traders on Reddit were actively speculating in silver, just as it was with GameStop shares.

Daniel Gali of TD Securities noted that a further increase in the price of silver to the $30 mark could lead to a significant increase in the investment activity of exchange-traded funds, but also increases the risk of a price correction.

Money managers increased their bets on Comex silver futures to the highest level in more than two years in early May, according to Bloomberg. Gross short positions held by investors accounted for 11% of total shares outstanding.

Despite the fact that silver prices have shown a significant increase, compared to gold, this metal remains relatively affordable. The two metals often move in parallel due to similar macroeconomic and currency properties that enable them to play a hedging role.

Record gold purchases by central banks, rising demand in China and low interest rates in the US also supported price movements in the silver market. The use of silver in the clean energy sector, particularly for solar panels, is also increasing, helping to support demand for the metal.

Among many other factors, today's silver market is experiencing a deficit for the fourth year in a row, indicating its strong demand and future prospects.