Global Metals Weekly: Silver becomes more precious

Research evidence excerpt

Global Metals Weekly: Silver becomes more precious

atlining of solar PV production in China, along with a potential decline Commodity Strategist

MLI (UK)

in solar installations this year. While we see demand for silver increasing across a range daryna.kovalska@bofa.com

of other sectors, these additions are too small to meaningfully boost industrial demand. Rachel Wiser

As such, we see a risk that silver may increasingly start trading more and more like a Commodity Strategist

BofAS

“precious metal”, i.e. investor demand could hold the key to future price movements. rachel.wiser@bofa.com

Equity Research

Still, there are still pockets of tightness in silver Jason Fairclough >>

Research Analyst

Linked to demand headwinds from commercial buyers, there is ongoing uncertainty over MLI (UK)

the Iran conflict and a risk that the depletion of energy inventories pushes up oil prices/ jason.fairclough@bofa.com

inflation, with concern over a hawkish Fed already dampening investor interest. Still, Caio Ribeiro >>

despite the somewhat subdued demand outlook, pockets of tightness persist, which Merrill Lynch (Brazil)

could help silver rise again. Indeed, after last year’s liquidity squeeze in London, caio.ribeiro@bofa.com

dislocations have not completely normalised and lease rates remain slightly higher than Matty Zhao >>

in the past. Renewed concerns that the US may impose tariffs around the USMCA Merrill Lynch (Hong Kong)

renegotiation, which is due by 1st July, seemingly have pushed prices higher in early May, matty.zhao@bofa.com

a ‘deja-vu’ from 2025. We also note that visible inventories in both LBMA and CME See Team Page for List of Analysts

warehouses remain well below recent highs, suggesting that there is no immediate silver

supply overhang.

USMCA = United States–Mexico–