Analysts See Silver on Cusp of Breakout

Recently, silver prices experienced a notable surge, topping $31 per ounce for the first time since last July. This marks the metal’s strongest gain since August 2020, climbing by 10% and reaching a two-month high. 

Investors are eyeing the potential for silver to climb even higher, driven by several factors. Historically, investors have used the gold-to-silver ratio to gauge buying opportunities. Currently, the ratio stands at 84, having recently dropped from over 90. In the past, it has mostly averaged around 70, suggesting that silver might be undervalued relative to gold.

Analysts, including Goldman Sachs, suggest that this could be the cusp of a multi-month breakout, driven by both macroeconomic factors. Specific demands such as the increasing need for silver in artificial intelligence and chip fabrication also play a role.

This evolving market dynamic, paired with anticipations of a Federal Reserve rate cut, positions silver as a compelling watch for investors this earnings season. For more information, read the full article on Yahoo! Finance.