***GENERAL ADVICE ONLY***
Given the weakening leading indicators in the US economic numbers, wea re recommending a take profit for the balance of our Silver position and leave the diversified ETPMPM (60% gold/20%silver/10%platinum/10% Palladium) for the purposes of geopolitical risk hedge.
Industrial demand for silver plays a significant role in influencing its price during economic booms, often leading to price fluctuations.
This relationship is driven by several factors:
Manufacturing Activity
During economic booms, manufacturing activity typically increases across various industries. Silver is widely used in manufacturing processes, particularly in:
- Electronics: Silver is a crucial component in electronic devices due to its excellent conductivity.
- Solar Panels: The photovoltaic industry relies heavily on silver for the production of solar cells.
- Automotive Sector: Silver is used in electrical contacts and batteries, especially in electric vehicles.
As production in these sectors ramps up during economic booms, the demand for silver rises, putting upward pressure on its price.
Supply-Demand Dynamics
A potential decrease in industrial demand will reduce competition from manufacturers for the available silver resources.
