Spot silver stands above $69

PANews, December 22 news

Spot silver first stands above $69/ounce

up nearly 139% year-to-date

This is the strongest annual performance since 1979

Currently, prices fluctuate around $67-68/ounce

Close to historical highs, some sources indicate it has reached or exceeded $68

The market predicts a possible test of the $69-70 level in the short term.

Main reasons for silver's rise

• Strong industrial demand:

Silver demand has surged in areas such as solar panels, electric vehicles, electronics,

and data centers, particularly driven by green energy transformation.

• Supply shortages:

Global silver mine supply growth is limited, with the market in deficit for consecutive years

and tight inventories in the London market.

• Inflows into safe-haven assets:

Economic uncertainty, changes in interest rate environments, geopolitical risks,

and investors shifting from the stock market to precious metal ETFs have pushed prices up.

• Macroeconomic factors:

A weakening dollar and inflation concerns also indirectly support precious metals.

"When all the money runs to safe-haven assets, is there still money for risk markets?"

The inflow of funds into safe-haven assets (such as silver, gold, bonds)

indeed means some funds are flowing out of risk assets

(such as the stock market, tech stocks, cryptocurrencies)

especially during concerns of economic recession or increased market volatility.

This can lead to short-term pressure on risk markets, reduced liquidity, and downward valuation adjustments.

Opportunities still exist in risk markets:

If inflation stabilizes, corporate earnings remain strong, or policy stimulus occurs,

risk assets may still attract funds.

Conversely, if safe-haven sentiment persists, precious metals like silver

may continue to attract capital, while the stock market faces adjustment pressure.