Silver traded at $32.79 per ounce, as of 9 a.m. ET. That’s up 37.03% from the beginning of the year.
Keep up with the current price of silver
Since the commencement of the year, silver prices have been on an upward trajectory. They have increased by 37.03%. A phenomenon worth investigating. Silver, now pegged at $32.79 per ounce, is painting an enticing picture for investors. It prompts a deeper analysis of the forces at work in the silver market.
What is the price of silver on November 14, 2024
The ongoing pandemic has played a key role in shaking up the global financial system. Investors have scrambled for safe-haven assets to shield their wealth from volatility in the equity markets. Falling into the category of precious metals, silver has long been viewed as a reliable store of value during periods of economic turbulence. Its tangible nature adds a sense of real value, something that stands the test of any economic hardship. This could explain the meteoric rise in silver prices since the beginning of the year.
Geopolitical dynamics have also had a hand in the surge. Silver, unlike other precious metals like gold, has significant industrial demand. It’s widely used in electronics, photography and medicine, among others. If trade relations between nations sour, silver supply could be disrupted. It can lead to an uptick in the prices. Moreover, the silver mining industry has also faced challenges in terms of reduced output due to COVID-19 restrictions. Consequently, any hindrance in supply can push the prices higher.
While the rise in silver prices is promising for investors, there is also a need for caution. Increased investment in silver as a safe-haven asset could create an investment bubble. Remember the 1980 silver crisis? A speculative buying spree drove the price up to an all-time high. The bubble inevitably bursts, leading to drastic drops in prices. It wreaked financial havoc for investors. The current bull-run should be viewed with this historical lesson in mind. Diversified investment strategy is always a wise move.
The bottom line is that silver’s strong performance this year is notable. However, it is essential for investors to remain prudent, understand the global economic context, and be cautious of creating a bubble that could burst. After all, what comes up, must come down.
