3 Key Catalysts That Could Keep Silver Surging Beyond 12-Year Highs
2024.10.23 04:20
- Silver’s recent rally has pushed prices to their highest level since 2012.
- Key demand drivers, including military and renewable energy sectors, are fueling the metal’s momentum.
- Traders eyeing the $35 level are on alert as technical factors hint at further gains.
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bulls are riding high, with recent sessions bringing strong gains that have pushed the metal to its highest price since 2012. The rally has rewarded long-position holders, and the momentum shows no signs of slowing.
The grey metal often lags behind ’s moves, and this time is no different, as it follows gold’s upward trend.
Fundamental forces are driving the metal’s surge, including ongoing supply shortages and the Fed’s monetary easing, with another 25 basis point cut in November.
3 Demand Drivers That Could Fuel Silver’s Momentum
The demand outlook for silver remains bullish. Supply and demand fundamentals point to continued buying pressure, with forecasts from the Silver Institute projecting a demand of 1.219 billion ounces in 2024, outpacing a supply of just 1.004 billion ounces. Several key factors are driving this imbalance:
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Federal Reserve Easing: With the Fed set to continue cutting rates in the coming year, silver—like gold—stands to benefit as lower interest rates fuel demand for precious metals.
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Renewable Energy and Electric Vehicles: Silver’s role in photovoltaic panels and electric vehicles continues to grow, with no signs of slowing. The push for cleaner energy will keep demand elevated for years to come.
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Military Industry Growth: Global military spending, spurred by conflicts such as the war in Ukraine, has also contributed to higher silver demand. Silver is a critical material in weapons systems, including missiles, radars, and satellites.
Technical Outlook: Is Silver a Buy at Current Levels?
Silver prices are testing key resistance at $35 per ounce, a level last seen in 2012. If the bulls manage a breakout, the next target will be around $37 per ounce.
However, with momentum firmly in their favor, there’s potential for prices to push above $40 in the near future.
The silver market remains one to watch as a combination of fundamental and technical factors suggests further upside is possible. Traders should be ready to capitalize on any opportunities as silver’s rally continues.
This Silver Miner With 30%+ Upside Offers a Strategic Way to Ride Silver’s Potential Bull Run
If you’re looking for another way to tap into silver’s potential bull run, Fortuna Mining Corp (NYSE:) offers an attractive opportunity.
This Canadian miner, focused on precious metals like silver, gold, and lead across South America, stands to benefit from rising commodity prices.
Source: InvestingPro
Recent improvements in net profits, which have returned to positive territory in the last two quarters, are a promising sign for continued growth.
According to InvestingPro, Fortuna’s fair value index suggests there’s more upside to come, with the potential to break past this year’s highs—levels not seen since 2021—above $7 per share.
Source: InvestingPro
This represents a 30%+ upside, offering investors a compelling alternative to simply holding silver.
As both silver prices and Fortuna’s performance gain momentum, this mining stock could serve as a strategic play for those looking to capitalize on the broader metals rally.
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Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, counsel or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset, is evaluated from multiple perspectives and is highly risky and therefore, any investment decision and the associated risk remains with the investor.
