Gold prices are trading higher on Thursday morning. Despite gold’s recent upward trajectory, silver prices have remained relatively stagnant, which is unexpected given the historical correlation between the two precious metals. However, if gold continues its upward trend, it’s likely that silver will eventually benefit from this momentum and experience some upward movement as well. Gold is trading at $2,462.45, up $3.66. Silver is trading at $30.43, up 12 cents. The ABC Bullion report titled “A Sterling Investment” provides an in-depth analysis of the silver market as of July 2024. It highlights silver’s historical performance, noting a 90% increase in its price from just below USD $16 per ounce in 2018 to USD $30 per ounce by mid-2024. The report emphasizes silver’s dual role as both an industrial and investment metal, with significant demand driven by industrial uses, particularly in photovoltaics for solar power, which saw a 64% increase in 2023. The market has experienced a supply deficit since 2019 due to record demand and declining mine output, projecting a deficit of 215 million ounces in 2024. Investment trends indicate a potential rise in institutional interest and ETP holdings, with silver seen as undervalued relative to gold.
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