Despite recent peaks, experts caution that the small size of the silver market makes it highly susceptible to rapid and abrupt price fluctuations, rendering it more volatile.
This year has seen metals become key players in the markets, with gold surging 65% and potentially marking its best year since 1979. This follows geopolitical and trade tensions that increase economic uncertainty and the potential reduction of interest rates in the U.S.
The latest silver price surge was recorded on Friday, reaching $54.47, potentially positioning it for the best year since 2010 if current trends persist.
Silver surpassed $50 per ounce for the first time in its history on October 9, surpassing previous highs set in 2011.
Analysts note that silver, like gold, reflects market fears and the appetite for safe-haven assets, compounded by recent shortages in the physical supply observed in London.
Market expert Manuel Pinto warned that silver, in addition to being scarce, “has practical properties that make it a valuable component in various products.”
“With stocks at the lowest level of the year and investor demand continuing, there is a risk of supply shortages that could affect various industries,” he emphasized.
Activotraders also highlights that while investors are profiting from metals, there is an associated risk with “excessive buying and volatility.”
“We are observing high tension in the price behavior of some metals,” analysts noted, viewing silver as a more volatile metal than others.
Additionally, the independence of the United States Federal Reserve might encourage investors to include silver in their portfolios.
Jupiter AM notes that silver is slightly more volatile than gold, often following its price trends but with more pronounced fluctuations.
