The silver price has been on a downward spiral since November 8th, 2023, when it hit a high of $24.50 per ounce. As of November 12th, 2023, the silver price is trading at $22.50 per ounce, down over 8% from its recent high.
There are a few factors that have contributed to the decline in the silver price. First, the US dollar has been strengthening against other major currencies. A stronger dollar makes silver more expensive for investors who hold other currencies.
Second, Federal Reserve Governor Dean Powell has made hawkish comments about the future of monetary policy. Powell has said that the Fed is likely to continue raising interest rates in order to combat inflation. Higher interest rates make silver less attractive to investors, as it is a non-yielding asset.
Finally, there has been a decrease in demand for silver from industrial users. Silver is used in a variety of industrial applications, such as electronics and solar panels. However, the global economy has been slowing down in recent months, which has led to a decrease in demand for silver from industrial users.
The decline in the silver price is a bad sign for investors who are holding silver. It is also a bad sign for the global economy, as silver is often seen as a barometer of economic health.
Analysts Weigh In
Analysts are divided on the outlook for the silver price. Some analysts believe that the silver price is likely to continue to decline in the near term, as the factors that are weighing on the silver price are likely to remain in place. Other analysts believe that the silver price is likely to rebound in the coming months, as investors eventually start to price in the potential for a recession.
What to Do Now
Investors who are holding silver should carefully consider their investment objectives and risk tolerance before making any decisions. Investors who are concerned about the near-term outlook for the silver price may want to consider selling their silver holdings and moving into other assets, such as gold or stocks. Investors who believe in the long-term potential of silver may want to hold onto their silver holdings and wait for the price to rebound.