Traditionally seen as a hedge against economic uncertainty, silver has become an attractive asset for those seeking stability ahead of the November 5 elections.
Central bank policies are supporting silver momentum
Increased monetary easing by major central banks has also played a key role in silver’s rise. The People’s Bank of China (PBoC) and the European Central Bank (ECB) have both cut interest rates, increasing interest in precious metals. The Bank of Canada (BoC) is expected to follow suit with a 50 basis point rate cut at its next meeting, which could further boost silver demand.
Rising industrial and military demand
Silver’s bullish outlook is also supported by its increasing use in military applications. Analysts predict that military consumption of silver could soon surpass that of other sectors such as electronics and renewable energy.
As governments worldwide increase defense spending, silver demand is expected to rise further.
Local festivities and Chinese demand stimulate silver consumption
In addition to global demand, local factors are putting upward pressure on the silver price. The festive and wedding seasons in India see a surge in purchases as jewelers increase their silver inventory.
In China, recent economic stimulus measures have boosted expectations of greater demand for silver as a low-cost investment option, contributing to the metal’s growing appeal.