Silver declined for the 5th consecutive week, as precious metals and commodities in general decreased in values on broader based risk-off sentiment.
From another point of view, alternative energies may help boost demand for silver in the coming years. Solar energy is taking off across the world. As silver is consumed in solar production and other industrial means, the price for silver will surely continue to rise.
According to Sprott Asset Management, the current setup is extremely bullish for silver, as short sellers seized the opportunity to reduce their “liabilities” by buying up contracts in early May at a 30% discount, while the remaining longs term investors do not seem willing to part with their silverholdings at these prices.
However, the reality remains that inflationary pressures will likely drive future silver prices in the short term, yet other factors can drive silver prices on the upside…