Silver Soars Over 20% in August, But Investors Should Be Cautious

Silver prices have surged over 20% in August, reaching $69.71 per ounce on August 26, its highest level since June 16.

The current rally is partly a recovery or catch-up move rather than an uninterrupted new bull leg, according to Nirpendra Yadav, Sr. Research Analyst at Bonanza.

The metal's gains are driven by macro-economic factors such as falling expectations for interest rates, a weaker dollar, and renewed demand for precious metals.

Silver is also benefiting from strong industrial demand, particularly from renewable energy, electronics, and other technology sectors, with supply issues adding further support.