The silver price put on a strong performance in 2024, hitting highs not seen in over a decade.
Despite some volatility, factors like increasing industrial demand, safe-haven buying from investors and weakening mining supply all came together during the year to support gains in the price.
All told, silver is up nearly 35 percent since the start of 2024, outperforming gold’s 32 percent gain.
Silver began Q4 on a strong note, reaching US$31.37 per ounce on October 1 and climbing to US$32.18 on October 4; it then slipped to US$30.49 on October 9. However, the white metal’s price didn’t remain low for long. It surged to its year-to-date high of US$34.72 on October 22, also reaching its highest level in 12 years.
As November began, the price of silver was again in retreat, trading at US$30.24 by November 15.
Silver faced headwinds following the US presidential election on November 5, losing nearly 5 percent in a single day as some investors fled to interest-bearing assets. However, the metal’s losses were somewhat softened after the US Federal Reserve made a 25 basis point cut to its benchmark rate on November 7.
Previously, Ukraine had only been allowed to use the missiles to strike targets along the border.
Silver fell to a quarterly low of US$30.11 on November 27, but since then the precious metal has regained some ground. As of December 11, it was trading at US$31.88.
The next Fed meeting is set to run from December 17 to 18. Most analysts expect the central bank to make one last 25 basis point cut before pausing in 2025.
Silver started the year on a low note as its lackluster performance from 2023 carried over.
However, rate cut expectations added momentum to silver at the end of February and the beginning of March, which pushed the price up from the US$22 range to above US$25.
At the time, Peter Krauth, editor of Silver Stock Investor, told the Investing News Network (INN), “Silver also typically lags gold, then catches up and surpasses it. We’re starting to see that happen in spades right now. Since the end of February, gold is up about 15 percent, while silver has been up about 22 percent.”
Krauth also mentioned declining aboveground silver inventories.
“I think there may be 12 to 24 months left before they run out,” he said.
The big news from the second quarter was silver breaking through the US$30 barrier.
The price continued to be fueled by rate cut speculation, but also saw support from industrial segments as demand from India soared. The country imported more silver during the first four months of 2024 than all of 2023.
India is typically known for its strong precious metals jewelry demand, but Silver Institute President and CEO Michael DiRienzo told INN that it was also benefiting from “firmer electrical and electronics demand, thanks to the continued strength in India’s real estate market and rising investment in local infrastructure construction.”
Silver didn’t see much upward momentum through most of the third quarter.
Instead, it saw a significant retreat toward US$26. Still, by the end of the quarter, a Fed rate cut had provided a substantial tailwind for silver, sending it above the US$32 mark by the end of September.
The deal will give First Majestic a 70 percent stake in the Cerro Los Gatos mine in Northern Mexico. The combined entity’s anticipated annual production is 30 million to 32 million silver equivalent ounces.
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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