Russia’s change in strategy and industrial demand are boosting the outlook
Amid this downturn, Russia’s renewed interest in increasing its silver holdings could provide a bullish outlook in the long term. According to a recent draft of Russia’s federal budget, the country plans to expand its holdings of precious metals, including silver, gold, platinum and palladium.
This strategic shift underscores silver’s growing importance in global markets, especially as countries look to diversify their assets amid global economic uncertainties. Additionally, silver’s increasing role in clean energy technologies, such as solar panels and electric vehicles, is driving industrial demand.
Investors looking to capitalize on this trend may want to consider funds like the Sprott Physical Silver Trust (PSLV), which offers exposure to silver without the complexity of physical storage. Alternatively, the Sprott Physical Gold and Silver Trust (CEF) offers a balanced approach, combining exposure to both metals.
Strong US dollar and geopolitical developments impact silver
The stronger US dollar, supported by expectations of slower Fed rate cuts and robust economic data, remains a major factor weighing on silver prices. Furthermore, easing geopolitical tensions in the Middle East are reducing demand for safe havens such as silver.
As geopolitical risks recede and the US dollar holds firm, silver may come under continued pressure in the near term.
However, the potential increase in global demand, especially from Russia, could pave the way for a longer-term upward trend, making silver an attractive investment for industrial and precious metals portfolios.