Wall Street Silver Podcast: Silver Under $20…Again!
Commodity markets have had a strong few years, as investors have rediscovered the asset class as a way to hide out from inflation. Yet many commodities are off their highs from earlier this year. And many look to move lower with the stock market in the months ahead.
That includes silver, a commodity that is both a precious metal and one that sees significant industrial demand. The recent drop in prices has sent the metal back under $20 per ounce.
More interestingly, that move is occurring as investors are looking to buy physical silver. Based on data from the COMEX warehouse, silver buying is depleting inventories that are usually held for trading the metal.
With the Fed looking to hike interest rates and slow the economy, metals prices may move lower. But silver is a key commodity for technologies such as EV batteries and solar panels. Recent legislation looking to expand green energy production could fuel more demand for the metal.
That could bode well for investors in the metal, whether in physical or paper markets. And any move higher in silver could bode well for silver stocks, which would see profitability explode as prices rise.
Plus, very little capital has been spent in the past 10 years for exploring for new sources of precious metals, which could lead to higher prices if demand remains robust.