Silver is getting a lot of attention right now. Francisco Blanch from Bank of America talked to CNBC about how the war between Russia and Ukraine is shaking up the markets and pushing silver’s price up. He also mentioned how the trade tensions between China and the US are adding to this. On top of that, this metal is super important for making things like solar panels, semiconductors, and helping with electrification—all big parts of the growing solar energy scene, according to Scottdale Mint. So, let’s learn more about silver’s situation.
What’s happening with this metal?
Bank of America experts, from one of the world’s largest financial institutions, say silver could be a smarter investment than gold this year and beyond. Simply put, they expect silver’s price to rise, making it an appealing option for anyone looking to protect—or even grow—their money.
Why is this metal’s price going up? There are a few important reasons for this question, so let’s explain them in detail.
1. Tension between countries
Tensions between countries continue to weigh on the global economy. The war between Russia and Ukraine has brought a great deal of uncertainty, and trade tensions between China and the United States are still causing friction. All of this adds to market instability and makes the economic outlook harder to predict.
In response, many investors look for safer places to put theirmoney—and silver is often seen as one of those reliable options during uncertain times. That’s why many people and investors turn to silver—it’s seen as a “safe haven” to help protect their money during uncertain times.
2. Tariffs
The United States has again imposed tariffs, which are extra taxes charged when buying products from other countries. This can increase the price of many raw materials (the materials used to make things). Silver, which is a raw material, can rise in price because production and trade costs increase with these tariffs. For this reason, this metal becomes an option to protect against these increases.
3. Why silver matters more than you think
This metal is not just a pretty metal for making jewelry or coins. It is also very important for industry, especially for new and green technologies. For example, silver is used to manufacture solar panels that convert sunlight into clean electricity. It is also essential in producing batteries and electronic components, like semiconductors found in computers, cell phones, and other technological devices. Since these technologies are growing a lot, the demand for silver increases, and that makes its price go up.
What do the experts say?
Francisco Blanch, a researcher at Bank of America who knows a lot about raw materials, has explained that silver is one of the best metals to invest in now. He mentions that silver is the best conductor of electricity, which means it helps electricity pass easily, so it is very important for electrification, renewable energy, and green technologies that the world is starting to use more and more. This will make this metal continue to be necessary in the future.
What is expected for the future?
Bank of America thinks that although there may be a pause in the rise of this metal’s price during one or two quarters (which equals a few months), after that the price will go up again. This is because industrial demand for silver will grow a lot, especially in sectors related to solar energy, batteries,and green technology.
Given the worldwide challenges and the increasing need for renewable energy solutions, silver continues to attract attention. Whether you’re considering putting money into it or simply watching the market, it’s obvious that this metal is more than just a pretty metal. It’s becoming an important part of what’s coming next. How do you see its future?