Silver prices broke records by surpassing 50 dollars!

Silver Prices Reach Historic High of $50

Silver prices broke a historic record on Thursday, reaching $50 per ounce, surpassing the previous peak set in April 2011. Investors showing interest in precious metals, anticipating that the Federal Reserve will continue to cut interest rates, played an important role in this increase.

Continued Rise for the Best Performance of the Year

Silver, tracked by the iShares Silver Trust (SLV), has shown a 73% increase since the beginning of 2023, heading towards its strongest annual performance since 2010. On the other hand, the highest annual increase recorded for silver occurred in 1979 at a rate of 360%.

Comparisons with Gold and Rising Trends

Meanwhile, gold, trading at $4,000 per ounce, has achieved a gain of 54% in 2023. Since 1979, gold continues to show its best performance with a 133% increase.

Silver's eighth consecutive weekly gain indicates the strongest upward trend seen since 2020. This situation is a sign that a strong momentum rally for silver is ongoing.

David Morrison: Potential Rise of Silver

Senior analyst David Morrison from Trade Nation stated that silver prices are at a "critical level," while noting that buyers still maintain control. However, he highlighted the need for caution in the short term due to overbought conditions.

Macroeconomic Factors and Silver

Colin Fenton from 22V Research explained that macroeconomic factors such as the U.S. government shutdown and the war in Ukraine have affected gold prices. However, he believes that silver currently offers better value per unit of risk.

Rise in Silver Mining Stocks

This favorable risk-reward profile has directed many investors towards silver mining stocks. The Global X Silver Miners ETF (SIL) has seen a 130% increase in 2023, achieving its highest annual performance in history.

The 10 mining companies leading the fund have recorded over a 200% increase this year, with some achieving gains exceeding 600%. The rally in physical silver and investors' interest in silver's potential for rise have further strengthened mine-based stocks.