In recent times, silver prices have experienced a 4% dip, valued at $23 per troy ounce due to elevated global interest rates, dissuading precious metal investments. The U.S. Federal Reserve’s unwavering stance on interest rates further impacted this trend.
However, industry insiders and analysts, like Ed Moya from OANDA, predict a bright outlook for silver. Forecasts hint at a revival, with silver poised to surpass $24 per ounce by year-end.
Silver holds a crucial role in the green energy transition, particularly within the flourishing solar sector. Where demand for photovoltaic cells has tripled since 2014.
Philip Newman, a consultant at Metals Focus, suggests that if new PV installations exceed 400 gigawatts by 2025, demand from this sector alone could reach 170-180 million ounces.
Despite efforts by solar panel manufacturers to reduce silver usage through design innovations. The silver market is bracing for a considerable deficit. The Silver Institute reported a shortfall of 237.7 million ounces in 2022, projected to persist in the years to come.
With global interest rates stabilizing and solar industry demand surging, silver’s intrinsic value as both an investment and a vital component in green technologies positions it for a promising upswing, bringing optimism to investors and stakeholders alike.