Silver's lack of follow-through: more than just macro?

Question

It's hard not to notice $SI's struggle, even with the recent -1.48% day pushing it down towards 19.34. We've seen a few attempts to break out, but there's just no sustained conviction, even with broader inflation concerns supposedly being a tailwind. Is the narrative that precious metals are the ultimate inflation hedge losing its luster, or are we just seeing a lack of new industrial demand to support it? It feels like something more fundamental might be at play beyond just the dollar strength. Anyone else seeing it differently?

sara69 · Accepted Answer

The industrial demand side is definitely worth considering. While gold has less reliance on it, silver's dual role means a slowdown in manufacturing can certainly cap its upside, even with inflation in the picture.

teerapat_t · Answer

จริงค่ะ เห็นด้วยเลย เงินยังไม่ค่อยวิ่งเท่าที่ควรเลยทั้งที่มีปัจจัยหนุนหลายอย่าง ไม่รู้ว่าเป็นเพราะคนยังมองเป็นสินทรัพย์ปลอดภัยแบบเก่าๆ หรือเปล่า หรือว่ามีเหตุผลอื่นที่เรามองข้ามไป

giulia_vermeulen · Answer

I've been wondering the same thing. Is it possible that institutional money is just finding better inflation hedges elsewhere, or is there a bigger supply issue with silver that isn't being talked about as much?

tor · Answer

That's a good point about industrial demand. While inflation is definitely a factor, silver also has that industrial component that gold doesn't, so perhaps that's holding it back compared to gold's performance.

Silver's lack of follow-through: more than just macro?

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