Silver Demand from Solar Sector Slows Down Amid Price Surge
The price of silver has seen a sharp rise in recent times, exceeding its highest level since late June. This surge is accompanied by similar increases in gold, platinum, and palladium prices.
However, analysts are now expressing concerns that the tailwind supporting silver's price from the solar industry may be slowing down. The demand for silver from the solar sector is projected to decline by 19% this year compared to last year.
This decline in demand is attributed to a reduction in the use of silver in silicon solar cells, which is expected to fall by another 17%. One possible reason behind this shift is the significant rise in silver prices, which reached a record high of $120/oz at the end of January. As a result, industries are seeking cheaper substitutes that can provide similar performance.
The gold market has also been impacted by these developments, with prices climbing back close to $4,300 per troy ounce for the first time since mid-June. Many analysts remain optimistic about the prospects for gold due to expectations of US interest rate hikes being somewhat exaggerated.