1. Silver prices surged to over $36, highest since 2012. 2. Year-to-date, silver is up over 20%, lagging behind gold's 25%. 3. Supply of silver is estimated to be 15% lower than demand in 2024. 4. Another supply deficit for silver is projected in 2025. 5. Industrial demand for silver, particularly in solar panels, is increasing.
The sharp rise in silver prices suggests higher demand. Historically, strong silver performance positively influenced related investments and ETFs such as AAAU.
Rising silver prices and supply deficits indicate strong future performance, directly impacting AAAU’s viability. Gold and silver price correlations historically lead to broader interest in precious metal equities.
Immediate increase in silver prices is likely to buoy AAAU in the short term. Market reactions to rising commodity prices can manifest quickly.