The post Is Silver set to outperform Gold by 2024? appeared on BitcoinEthereumNews.com.

As silver enters its fourth consecutive year of supply deficit, driven by heightened demand in the technology and renewable energy sectors, the precious metal has made significant strides, surpassing $30 an ounce to hit the highest level in more than a decade. Closing 6.5% higher at $31.49 an ounce on Friday, the precious metal has soared 32% this year, outperforming gold and becoming one of the best-performing commodities of 2024. Silver’s remarkable performance is driven by surging investor interest, a supportive macroeconomic backdrop, and a projected fourth consecutive annual market deficit. The price surge gained momentum on Friday, bolstered by positive sentiment in broader metals markets. Despite outpacing gold, silver remains relatively affordable, making it an attractive option for investors. The two precious metals often move in tandem due to their similar macro- and currency-hedging properties. With gold reaching record highs fueled by central bank purchases, retail interest in China, and renewed bets on lower U.S. interest rates, silver has followed suit with silver having substantial and increasing industrial applications. Demand surge and market dynamics Silver’s rally is not solely speculative; it has strong industrial demand backing its rise. The metal is crucial for solar panels, and robust growth in the renewable energy sector is expected to push silver usage to record levels this year, according to the Silver Institute. Silver market shortages. Source: Silver Institute This growing industrial demand is leading to a fourth consecutive year of market deficit, with this year’s shortage projected to be the second largest on record. Industrial users, who typically rely on miners for supply, are increasingly turning to major inventories to meet their needs. Stockpiles tracked by the London Bullion Market Association fell to their second-lowest level on record in April. LBMA-tracked Silver stockpiles. Source: LBMA According to a TD Securities research report,…

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Filed under: News - @ May 18, 2024 12:18 pm