Investors may have been putting more emphasis on the latter half of that verse of late. Gold prices have been grabbing attention amid a remarkable rally in recent weeks. They hit fresh record highs on Tuesday.
But silver could soon get some more love, though investors should be careful about trading the famously volatile commodity, which has uses in industry beyond being a precious metal. Continuous-contract silver futures jumped 2.2% on Tuesday to above $25.60 an ounce, the highest levels since late 2023.
“Silver has also woken up recently…closing in on $26 per ounce, a level which has acted as resistance for over two years now. If it can break above here this week, it could act as a strong reminder that silver is severely lagging gold’s gains,” said David Morrison, an analyst at broker Trade Nation. “But investors should be mindful of silver’s incredible volatility, and that trading it is not for the fainthearted.”
Although silver prices have been lagging behind gold over the past year, they have been rising more rapidly of late. Silver prices are up just 6% over the past year, while gold has gained 15%, but silver’s 10% advance in the past month beats a 9% gain in gold.
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That has analysts speculating over whether the silver rally has legs.
“The formerly nonchalant silver finally appears ready to join gold’s advance,” John Roque, a technical analyst at 22V Research, wrote in a Tuesday note. “$30 as the first target and then, presuming a breakout, $40 as the second target.”
From a technical perspective—technical analysis relies on statistical trends in market data as opposed to fundamental analysis—silver is looking good, Roque wrote. On his technical-score scale of 0 to 4, silver rates at 4, with prices above their 40-week moving average and the slope of this moving average increasing.
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Write to Jack Denton at jack.denton@barrons.com