Silver stocks strengthened after strong guidance numbers, and miners are expecting higher production numbers this year. Many silver companies are increasing production to help offset lower silver prices. For instance, Endeavour Silver (NYSE: EXK) reported a record silver production for the fourth quarter. [ETF Spotlight: Junior Silver Miners]
Silver, unlike gold, sees greater demand from the industrial sectors, notably in automotive industry, consumer electronics, chemicals and solar sector.
“Silver swings between dual roles as a useful industrial metal and safe-haven asset,” according to Morningstar analyst Alex Bryan. “Most of the time, industrial demand drives silver prices. However, during times of market dislocation, high inflation expectations, or economic uncertainty, investment demand for silver becomes the main price driver.”
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Max Chen contributed to this article.