Silver Price Climbs to New Heights
The silver price is currently at a record level and shows a significantly stronger performance than gold. With a weekly increase of about 4.1%, the silver price stands at approximately $38.41 per ounce, while gold only increased moderately by 0.62% to about $3358.
Chart Technical Breakout as a Bullish Signal
This development is primarily characterized by a chart technical breakout above the important barrier of $36, which is seen as a bullish signal and releases new upward potential. Silver has reached its highest level since September 2011 and has increased by around 35% since the beginning of the year – a rise of about $10 per ounce.
Factors for Rising Demand
- Industrial Demand: Silver is not only used as a store of value but plays a central role in future technologies such as photovoltaics and electronics. Industrial demand reached record highs last year.
- Supply Deficit: There is a structural supply deficit in the silver market, with noticeable scarcity, especially in the London spot market. This leads to rising prices and higher borrowing costs for physical silver (leasing rates are currently around 4.5%, significantly above the usual level near zero).
- Institutional Interest: In addition to private investors, institutional investors are increasingly investing in the precious metal, further intensifying the dynamics.
For private investors and small investors, this market development is particularly relevant: the chart technical breakout signals a possible continuation of the upward trend in the silver price. The combination of industrial use and scarcity makes the precious metal an attractive investment alternative compared to gold or other assets.
In summary, the current price increase in silver reflects both fundamental factors such as increasing industrial demand and supply bottlenecks as well as technical signals of a bull market – a scenario that has prompted many investors to increasingly focus on this precious metal.