“Silver is likely to post another supply deficit this year, following last year’s trend, further tightening the market. Despite the US imposing higher tariffs against Chinese solar panel imports last week, its new climate change policy announced last week is likely to lift the demand for photovoltaics in general. Solar panels are the fastest segment of demand growth for silver fabrication, with a compound annual growth rate of 20% over the past decade and are now as significant as photography in terms of sources of silver demand,” said ETF Securities.
If silver notches a near-term rally, upside would likely be fueled by short-covering. Last week, short bets on silver climbed to the highest levels in eight years, Bloomberg reported, citing the U.S. Commodity Futures Trading Commission.
iShares Silver Trust
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of GLD and SLV.