FX.co ★ Silver Hovers Near 14-Year High

Silver prices eased to $46 per ounce on Tuesday after previously reaching a fourteen-year peak of $47.2 earlier in the session. This fluctuation comes amidst potential supply concerns and a positive outlook on demand, both for bullion and industrial applications of silver. According to the Silver Institute, the silver market is projected to face a deficit for the fifth consecutive year, with global production expected to reach 844 million ounces by 2025—falling 100 million ounces short of anticipated demand. Bullion assets have benefited from increased demand for safety, spurred recently by the risk of a government shutdown in the United States and the fiscal challenges associated with Washington's indications of increased spending. In the industrial sector, the metal's attractiveness has been enhanced by the rising adoption of solar power. Although China's solar installations saw a modest increase in August due to pricing reforms encouraging companies to expedite installations in June, the country's exports of solar cells recently surged by 40%. Additionally, silver has seen robust demand in consumer electronics and data centers.