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Choratas Estates LLC eyes 2024 silver potential

·2 mins

Will silver continue to shine in 2024? Choratas Estates LLC analysts have provided insights to help you understand the market trends.

Silver has long been attractive to electrification exporters due to its major role in electric vehicle batteries, federal energy components, and electronics. It is the best conductor of electricity among all elements. Silver is also an excellent conductor of heat, making it valuable for industrial applications. Additionally, its reflective properties make it useful in devices, mirrors, and other optical instruments.

This year, the silver rate has been held back mainly by major currencies.

  • The strength of the US dollar is likely to continue to pressure silver prices until the Federal Reserve changes its monetary policy.
  • The volume of speculative positions in the silver futures market is low, usually due to reaching price lows.
  • Rising silver prices could lead to the entry of exchange-traded products into the market in 2024, which is likely to provide additional momentum. Silver quotes in 2024 are forecasted to range from $17 to $25 per ounce.

According to Choratas Estates LLC analysts, silver may surpass gold in price growth in 2024. This is supported by positive macroeconomic conditions, high demand, and a favorable technical outlook.

Investors have largely ignored silver, giving it great growth potential. Silver is expected to outperform gold, a trend commonly seen in precious metals bull markets. Recent price dynamics are encouraging. Additionally, the supply of silver investment products is limited, with less silver available for storage and investment. This shortage is expected to become a significant issue in 2024.

Global silver demand has increased by 16%, reaching 1.2 billion ounces by mid-November 2023. The silver market remains tight, with the secondary market experiencing the most serious supply shortage of precious metals in recent emissions, as reported by The Silver Institute. The silver supply deficit is 194 million ounces, meaning demand will exceed supply by nearly 20%. This represents a 16% increase in consumption growth, setting a record high. The year 2023 has witnessed an unprecedented physical market shortage.

This historic supply shortage marks a significant fourfold increase in the supply gap compared to the previous year.

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