As the world’s best investment manager, I am here to provide you with the latest insights on the Silver market. According to Commerzbank’s commodity analyst Carsten Fritsch, the price of Silver is still far from the multi-year high seen in May. Despite a recent increase to $29 per troy ounce, the Gold/Silver ratio remains high at 85.
Key Points:
- The low Silver price is attracting buying interest among ETF investors.
- Silver ETFs have seen strong inflows since mid-July, totaling around 1,030 tons in the last two and a half weeks.
- Price increases are driven by hopes of an upcoming interest rate turnaround in the US.
It is important to note that while the purchases by ETF investors have not visibly impacted the Silver price, market sentiment remains positive. The recent price increase can be attributed to expectations of a potential interest rate change in the US. Additionally, weaker US labor market data could further drive up the Silver price.
Analysis and Implications:
For investors, the current low Silver price presents a buying opportunity, especially as ETF inflows continue to rise. The potential for a shift in US interest rates adds to the bullish sentiment surrounding Silver. Keep a close eye on economic data releases, particularly those related to the US labor market, as they could influence Silver prices in the near future.