According to Jinshi.com, a research report by CITIC Securities pointed out that silver has both financial and commodity attributes, and the current macro and commodity attributes are resonating upward. The Fed's interest rate cuts have led to a downward real interest rate, the weakening of the US dollar credit system, and geopolitical factors have become the driving force for the price of precious metals. The current gold and copper prices have reached record highs, while silver, which is also denominated in US dollars, is still at the 60% percentile of its historical high, opening up room for imagination in silver prices.
The gold-silver ratio is at a high level, and the downward revision of the ratio will promote greater upward elasticity of silver. At the same time, the demand for silver is good, the industrial demand is strong, and the demand in the photovoltaic silver paste field is growing rapidly. It is expected that the demand for silver will grow by 2.0% in 2024; but it is difficult to form an increase on the supply side. The supply CAGR in the past ten years has been negative. It is expected that the supply will continue to decline by 0.7% in 2024. Silver is expected to be in short supply for four consecutive years, and the gap will be larger than in 2023.