Silver has a long history as a store of value, with its use in jewellery, silverware, and coinage dating back thousands of years. In modern times, silver has become an increasingly popular investment choice due to its perceived safety and potential for price appreciation.
One factor driving silver prices higher is the low interest rate environment. With interest rates at historic lows, investors are seeking alternative investments that offer higher returns. Precious metals like silver are seen as an attractive option, as they are often viewed as a hedge against inflation and currency devaluation.
In addition to low interest rates, geopolitical tensions and economic uncertainty have also contributed to the recent surge in silver prices. The ongoing trade tensions between the US and China, as well as other geopolitical risks around the world, have fuelled investor demand for safe haven assets.
Another factor driving silver prices higher is the increasing demand for silver in the technology industry. Silver is a key component in the production of electronic devices, including smartphones, computers, and solar panels. As demand for these devices continues to grow, the demand for silver is expected to rise as well.
While the recent surge in silver prices has been driven largely by haven demand, it is important to note that silver prices can be volatile and subject to sudden price swings. As with any investment, it is important for investors to do their own research and carefully consider the risks and potential rewards before making any investment decisions.
In conclusion, silver prices have climbed above $23 per ounce due to a combination of factors including low interest rates, geopolitical tensions, economic uncertainty, and increasing demand in the technology industry. While silver can be a volatile investment, many investors view it as a safe haven asset and a potential hedge against inflation and currency devaluation.