"Precious metals markets are entering a pivotal phase as 2026 begins, with silver standing out in particular as one of the most debated and closely analysed assets-not only because of its remarkable price performance, but also due to the convergence of a rare set of monetary, economic, and geopolitical factors at the same time. From my perspective, what is currently unfolding in the silver market cannot be dismissed as a temporary speculative wave;"
"The metal posted gains of nearly 148% during 2025, far exceeding most conservative forecasts that had long viewed silver as merely tracking gold's movements. This strong performance underscores growing market awareness that silver is no longer just a traditional precious metal, but a multi-dimensional strategic asset-serving simultaneously as a safe haven, a monetary hedge, and a vital industrial component, particularly after being classified as a critical mineral for the U.S. economy."
"Market expectations point to two additional interest rate cuts in 2026, fundamentally altering the opportunity cost equation for holding non-yielding assets, foremost among them silver. Historically, precious metals tend to thrive in low or declining interest rate environments, as investors reallocate capital away from fixed-income instruments toward real assets. In my view, silver could benefit even more than gold in this context, given its higher sensitivity to monetary shifts and its close linkage to industrial demand."
Silver entered 2026 as a focal precious metal due to the convergence of monetary, economic, and geopolitical factors. The metal surged above $74 per ounce after gaining nearly 148% in 2025, elevating silver from a traditional precious metal to a multi-dimensional strategic asset that functions as a safe haven, monetary hedge, and industrial input, especially after U.S. critical-mineral classification. Anticipated Federal Reserve rate cuts in 2026 reduce the opportunity cost of holding non-yielding assets, favoring silver given its higher sensitivity to monetary shifts. A weaker U.S. dollar and systemic risk considerations further support silver's rising appeal.
Read at London Business News | Londonlovesbusiness.com
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