The end of the silver honeymoon with the solar industry Will investment demand prevent the drop in silver prices? | The ratio between gold and silver is decreasing.
According to Kitco News, the silver market has experienced one of its most diverse price periods in recent years; A metal that has received attention from two different paths at the same time, namely demand for investment and widespread consumption in modern industries. But now one of the most important drivers of this market's growth seems to be changing direction.
In the new report of the commodity analysis team of the BMO Markets Capital bank, it is stated that the ratio between gold and silver has entered a structural uptrend.
Analysts of this bank believe that the biggest risk facing silver is the loss of its most important growth engine of demand, which is the solar energy industry.
According to analysts, the silver market should not only prepare itself for a slowdown in demand from solar installations, but the sharp increase in the price of this metal to the range of $120 per ounce at the beginning of this year has also become a new factor in the weakening of demand.
Report details.