As precious metals enter a narrow trading range, silver’s future is becoming increasingly uncertain. While gold continues to hold its ground as a safe-haven asset, silver is struggling to keep pace. Experts believe the growing industrial demand for silver is gradually diminishing its appeal as an investment vehicle.
A Shift in Investor Sentiment Toward Silver
Kevin Grady, President of Phoenix Futures and Options, noted that silver has lost part of its traditional role as a leveraged play on gold. He explained that with the expansion of solar energy and electrification projects, a significant portion of silver is being directed toward industrial use. This shift has weakened silver’s historical correlation with gold’s upward movements.
“When gold rallies by $100, silver usually follows,” Grady said. “But that hasn’t been the case lately.” According to him, this divergence makes silver a less attractive option for investors seeking strong returns alongside gold.
Silver Caught Between Industry and Investment
Sean Lusk, co-director of commercial hedging at Walsh Trading, also voiced concerns about silver’s long-term resilience. Unlike gold, silver is not purchased by central banks as a reserve asset, making it more speculative in nature. Lusk warned that if gold experiences a sharp decline, silver is unlikely to hold its ground.
“Silver doesn’t function as a safe-haven asset,” he stated. “If gold fails to hold key technical support levels, silver will likely follow it downward.”
Conclusion: Silver Faces a Price Plateau
According to analysts, metals such as silver, platinum, and copper are now stuck in a range-bound market. Platinum continues to fluctuate between $950 and $1,000, while silver has failed to break above the $35 level. This sideways price action indicates that, unlike gold, these metals have yet to show sustained bullish momentum.
Silver is now trapped between growing industrial use and lagging investment interest. Unless gold regains strength and rallies further, a significant upward move for silver seems unlikely in the near term.
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