Silver rose in the past month
Silver futures on COMEX, the commodity division of NYMEX, is the only precious metal that rose on a YTD (year-to-date) basis. Other precious metals saw a fall in their prices. Silver futures have encountered a rise in its price of 9.4% on a 30-day trailing basis. As of Tuesday, October 27, silver’s trading price closed at $15.90 per ounce. It lost 0.26% from the previous day’s close.
Silver-backed ETFs like the leveraged ProShares Ultra Silver ETF (AGQ) and the Global X Silver Miners ETF (SIL) saw a rise in their prices of 17.2% and 18.8%, respectively. Mining companies that rose due to a rise in silver’s price include First Majestic Silver (AG), Silver Wheaton (SLW), and Pan American Silver (PAAS). These three companies rose 21.1%, 23%, and 31%, respectively, on a 30-day trailing basis. Together, they account for 7.2% of the VanEck Vectors Gold Miners ETF (GDX).
An important factor that affects the demand for silver is its increased use for solar energy. The amount of silver required for a solar panel is relatively high. It needs about 20 grams of silver. The figure is large if we compare the almost 250-mile grams of silver used in telephonic devices—compared to other electrical appliances that have an above-average demand for silver. Known as “the poor man’s gold,” silver is used as a hedge against global uncertainties, just like gold. However, the extensive industrial use pushes the metal as the economy grows.
We all know that the demand for solar energy is rising. Since silver is a crucial element in this form energy, it could also experience high growth for the foreseeable future.