With very large quantities shipped earlier to Britain, specifically to London which is considered one of the global trade centers for this type of valuable metals; this aims to decrease the pressure due to rising demands, which in turn pushed the price to reach new levels, according to what was stated by Bloomberg.
The stock of silver in the warehouses linked in the Chinese Shanghai Futures Exchange recently reached its lowest levels since the year 2015. On the other hand, the trading volumes in Shanghai Financial Market for gold has returned to the lowest level in more than 9 years, according to what was revealed by brokerage firms and exchange data. This decrease came after China's exports of the precious metal had increased to about 660 tons last month, with these being the highest exports recorded over a month.
The Safe Haven for Investment... Gold or Silver?
Undoubtedly, the global silver market is facing an impending danger, but what some do not know is that the gold market is closely linked to the silver market, and both are considered safe havens for investment. Their relationship has been linked throughout history, both moving in equal directions based on global economic and geopolitical factors; gold is considered a safe haven, and silver is seen as a more flexible option especially for investors looking for investment opportunities at lower prices.
The transition between these precious metals very much resembles investors in Jordan moving from traditional asset markets to modern digital fields, such as investing in the Jordanian online casino, which now offers various models of returns and rewards with different levels of financial risks. With the rapid development of electronic casinos and their reliance on advanced technological innovations, they represent an investment opportunity for some users in Jordan, providing bonuses and promotional offers that allow multiple winning opportunities in the best online casino in Jordan. Despite the different nature of investment between precious metals such as gold and silver and electronic casinos, the concept of risk remains present in both fields, requiring precise understanding and conscious risk management. Ultimately, making wise and well-considered decisions is the decisive factor for achieving successful investment that aligns with the investor's goals and aspirations in the Jordanian market.
A Year Full of Turmoil in the Global Silver Market
According to Bloomberg, and based on what was conveyed by the analyst from Gaineroy Futures, Ziggy Wu, said that this shortage is due to an increase in exports to London, emphasizing that the shortage might decrease within approximately two months.
It is worth mentioning that silver has experienced a year full of turmoil, seeing a significant price increase by up to 80%; reaching a series of rises that coincided with the rising gold prices. On the other hand, traders bet that the current US President, Trump, might move to impose customs tariffs on the less expensive metal.
In response, this turmoil attracted the precious metal to the United States, also causing a tightening of the London market at a time when Indian demand flourished, leading to historic pressure on this metal of no less importance than any other metal. Not to mention that the current decline in Chinese holdings indicates that the country may not succeed in providing support in the short term.
On the other hand, TD Securities commodities strategist, Danya Gali, added that if customs tariffs are imposed on the precious metal, silver will make its way to the United States, and if that happens, Shanghai markets will continue to suffer from the impacts that supported London, and this impact will be very strong.
Short-Term Pressures
"Backwardation" is a famous term referring to pressure on the precious metal, coming amidst the decline of China's stock which contributed to silver prices exceeding short-term futures prices in the Shanghai market. Looking at the stock decrease, or what is known as inelastic supply, concerns are still present, according to Futures company.
In terms of demand, China's consumption of silver has increased in photovoltaic components, being one of the main uses of the metal, where Wu stated that the last quarter is usually the peak season for installing solar power devices. Notably, some retail traders in China have turned to using silver in installing devices, especially after the new long-term rules were added to the value-added tax on gold, which is now sold outside the financial market.
In conclusion, silver spot contracts are currently traded at a price exceeding $52 per ounce, and this has recorded a 2% increase in the precious metal.
Silver Price Five Years from Now
Based on the current technical analyses of the silver price and price forecasts for the upcoming period, the range of the precious metal might vary between $50 to $60 by the end of next year and the following year, based on the demand for the metal and the shortage of supply. If the demand for the metal continues, coinciding with rising economic tensions and inflation, the metal might see a rise reaching $70 per ounce at the beginning of 2028, but the expected range for the silver price will not exceed $40 per ounce five years from now in 2030.
