Silver: Industrial support and volatility risks – Commerzbank

Commerzbank's Commodity Analyst Barbara Lambrecht notes that Silver has surged to a two-month high near USD 87 per troy ounce, supported by strength in industrial metals and a record high London Metal Exchange index. The bank highlights reports of potential energy-crisis-related disruptions in Peru, a major Silver producer, as an additional driver. However, Commerzbank warns investors about high volatility and cautions against excessive optimism.

Industrial demand and supply concerns

"Silver even surged significantly yesterday and briefly traded at USD 87 per troy ounce today, a two-month high."

"The impulse for the relative strength of silver, which is more heavily influenced by industrial demand than gold, is likely to stem from the industrial metals markets."

"The London Metal Exchange index climbed to a new record high yesterday."

"According to the report, Peru could declare an emergency decree due to the energy crisis, which could also affect the production of key metals."

"However, we caution against excessive optimism and point to the high volatility in the silver market."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)