This is largely due to the fact that the restrictions imposed by COVID-19 in countries such as Peru and Mexico, which are some of the main producers of silver, were lifted much earlier than in the rest of the world. There are also silver-exchange traded funds that offer extensive exposure to silver companies and to the metal itself, while more experienced traders may be interested in silver futures. When prices are low and you find a silver company that has demonstrated its ability to take advantage of the situation, that's when you want to buy. While analysts tend to be cautious about issuing long-term forecasts for commodities, algorithm-based forecasting services regularly provide price perspectives for longer periods of time.
Jeff then analyzes the CPM Group's price projections and the points where CPM Group expects prices to move both during the next week and in the coming months. We recommend that you always do your own research and consider the latest news on the price of silver, market trends, technical and fundamental analysis, and expert opinion before making any investment decision. In recent years, the Federal Reserve has reduced rates to zero, a measure that has positively affected the prices of both metals. This represents a gradual step forward by the government towards economic reopening, which benefits the price of growth-sensitive and industry-linked commodities, such as silver.
As many analysts point out, silver is known to surpass its sister metal, gold, in times of economic prosperity and expansion. The actions of the United States Federal Reserve and the Chinese government greatly influence the commodity and should be closely monitored to determine possible price trajectories. Silver is, of course, the more volatile of the two precious metals, but it is nevertheless often traded in relation to gold. There were several trends that drove demand for silver, including strong demand for consumer electronics amid the transition to remote work, investment in 5G infrastructure and the increase in the use of silver in the green economy, especially in solar photovoltaic (PV) panels.
Despite the saving of metals, which has already reduced the silver content in photovoltaic cells by 80% over the past decade, demand is expected to grow over the next five years. For example, investors may choose to invest their money in silver-focused stocks by purchasing shares in companies that focus on silver mining and exploration. In fact, silver is only an effective hedge against inflation over extremely long periods of time, measured in decades or centuries. The enormous amount of silver available has not been met with the increase in demand, which has kept prices low.
Gold and silver prices fell sharply at the end of June, culminating in a sharp fall in prices on July 1.