While the commodity market saw sharp fluctuations throughout the year, the rise in precious metals such as gold and silver stood out.
Like gold, silver is a safe haven in times of geopolitical tensions or financial instability and is also used in the industrial sector. Strong demand for silver from sectors such as electronics, semiconductors and renewable energy, as well as interest rate cuts by the US Federal Reserve (Fed), are listed as important factors supporting the price of silver.
Silver's ounce price, which began the year at $28.9, followed a buying-oriented trend throughout the year due to the impact of these developments. Unzen silver, whose rise accelerated especially after May, gained in value for five months in a row. Silver continued its rise in October and broke a record today, rising to $51.23 an ounce. Ounce of silver has given its investors a return of 75.2 percent since the beginning of the year.
Zafer Ergezen, an expert in futures and commodities markets, said in his assessment: “The recent rise in silver was influenced by the higher-than-expected growth data announced in the US and the increased possibility of a rate cut in the Fed meeting minutes. This actually brings a recovery for the industrial sector economies.” he said.
Ergezen pointed out that the silver side is much stronger for this reason, explaining that the gold-silver ratio has turned in favor of silver. Ergezen stated that central banks' gold purchases were strong and that silver was also positively influenced by this situation.
Ergezen explained that central banks' interest rate decisions and geopolitical risks impact silver prices: “The increasing likelihood of interest rate cuts in the US also characterizes silver. With the federal government shutdown in the US, there has been a transition from US bonds to precious metals such as gold and silver.” gave his assessment.
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