US dollar weakens as gold and silver soar – business live

Silver, which has a lively following among retail investors, can enjoy explosive spurts when conditions are right. Catalysts typically include a pick-up in manufacturing demand and loose monetary policy, which increases its relative attraction as a store of value.

“We see both of these factors driving silver higher over the next 6-12 months,” said analysts at Citi this week. The bank expects the price to hit $25 an ounce by the middle of next year.

Industrial applications, including electronics and photovoltaic cells used in solar panels, account for about 55 per cent of silver demand, according to RBC Capital Markets.

This contrasts with gold, where investment makes up a far larger proportion of demand, making its price more susceptible to swings in sentiment. Investors have picked silver as a way to play this “green” recovery, said Colin Hamilton, analyst at BMO Capital Markets.