Following gold’s peak on Wednesday exceeding $4,000, silver also made gains, rising 3.12% to $50.4142 per ounce by 13:30 GMT (15:30 in Paris).
In an inquiry by AFP, John Plassard, Head of Investment Strategy at Cité Gestion Private Bank, cited a “silver recovery effect” after gold’s significant gains.
Since Donald Trump’s return to the White House and his critiques of the U.S. Federal Reserve, market confidence in American assets, including the dollar, has been waning, compounded by the recent budget impasse in the United States.
In 2011, silver approached $50 per ounce (31.1 g), seen as a hedge against inflation and the European public debt crisis.
“Investors are increasingly trying to offload anything related to fiat money,” Plassard added.
The industry is facing a long-standing structural deficit, where demand surpasses supply.
However, “silver is an essential industrial metal for the production of semiconductor chips for AI [artificial intelligence] that power data centers worldwide,” noted Kathleen Brooks, Director of Research at brokerage XTB.
