Industrial demand, which accounts for 75% of the world’s supply of silver, is still growing, especially with the global economy projected to expand 4.5% this year. The already weakened U.S. dollar is also expected to remain at depreciated levels. Commodities such as silver are priced in U.S. dollars and they usually move in opposite directions. Additionally, silver supply remains relatively low as current rising demand outstrips the expansion of silver mine production.
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iShares Silver Trust
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own SLV.