Silver: Long-term bullish fundamentals

Interest rates are not the only factor affecting the price of Silver, however. The precious metal is used in a variety of industrial processes and an overall positive outlook for global growth is a beneficial factor for Silver demand in the long-term. 

Chinese data released on Monday showed a higher-than-expected rise in Industrial Production, which showed a 7.0% gain in February, beating the 5.0% expected and 6.8% previous. Fixed Asset Investment – which is investment in plant and machinery – rose 4.2% in February, versus estimates of 3.2% and 3,0% previously. Retail Sales grew more than forecast but less than previous, according to the National Bureau of Statistics of China.

Recent data from the US Federal Reserve also showed US Industrial Production beating estimates in February, and an improvement on the negative 0.5% of January. 

Silver price could be in for more gains as global demand increases for its use in the manufacture of Solar Panels, a wide variety of electronic devices and jewelry, according to Marcus Garvey an analyst at Macquarie. 

The Silver Institute, a not-for-profit organization based in the US, has forecast robust demand for Silver in 2024, predicting it will see its second best year on record with demand rising to 1.2 billion ounces.