Why is there a strong increase in silver investments?

Demand for Silver is Rapidly Increasing

Assets such as gold, stocks, and real estate are among the most preferred options for investors. However, in recent times, attention is increasingly turning to silver. Silver prices have reached historic highs in the last few months, rising from 30 dollars at the beginning of the year to 64.65 dollars. This situation has increased investors' interest in silver.

110% Annual Increase

Since the beginning of this year, the price of silver has gained approximately %110 in value. For many years overshadowed by gold, silver has become the darling of investors with such a significant increase. While some correction possibilities may exist in the short term, the general consensus is that silver prices are expected to maintain a robust trajectory in the upcoming period.

Stronger Performance Compared to Gold

In 1980 and 2011, the price of silver could not exceed 49 dollars per ounce; however, this year, while gold rose by %60, silver provided a return of %110. One of the reasons behind this performance is the depreciation of the US dollar and expectations of interest rate cuts by the Federal Reserve (Fed). Interest rate cuts increase the appeal of precious metals.

Supply Constraints and Production Issues

Another reason for the increase in silver is that global supply is not keeping up with demand. The aging of mines and declining reserves in Latin America are affecting production. In Mexico, due to years of limited production, silver supply has decreased by double-digit percentages. Large mines like Fresnillo are facing declining ore quality and rapidly depleting reserves.

Demand for Technology and GREEN Energy

Demand for silver is not only for investment purposes but also plays a significant role in modern technologies and the clean energy transition. In particular, electric vehicles and solar panels continue to be strong demand sources for silver. This situation indicates that the demand for silver is likely to increase in the future.

The Historical Significance of Silver

Used as a store of value and a trading medium for thousands of years, silver has played an important role throughout history. From ancient times, silver has been a reliable store of value, and it continues to serve the same function for today's investors.