As we near the end of the second quarter, the price of %Silver has gained 21% on the year, outpacing the rise of gold and copper, and beating the returns seen in stocks.
Currently, silver is trading right around $30 U.S. an ounce, its highest level since 2012. The metal’s outperformance is being attributed to two factors, say analysts.
First, silver is viewed as a precious metal and used in jewellery like gold. However, silver also has industrial applications as copper does. Silver is a good electricity conductor.
Silver’s dual purpose has led to a sharp increase in demand for the metal, which is used in everything from electric vehicles to cell phones.
Increasingly, silver is also being used to make the powerful semiconductor chips needed for artificial intelligence (A.I.) models and applications.
The Silver Institute, an industry lobby group, has said that industrial demand for silver is now at record levels and sees a further 20% rise in demand this year.
Demand for silver is particularly strong in China, where physical silver is trading at a premium to spot prices in the nation of 1.4 billion people.
Analysts recommend investors consider positions in the iShares Silver Trust (SLV) or Global X Silver Miners (SIL) exchange-traded funds (ETFs) to capitalize on the metal’s rising price.