After surpassing an 11-year price high, silver’s rally remains strong. On May 21, the Shanghai Futures Exchange (SHFE) silver futures contract rose by more than 7% during intraday trading, setting a new historic high. It closed at 8231 yuan per kilogram, up 3.82%.
"Silver, like other precious metals, is significantly influenced by macroeconomic and international factors," said Xingye Silver & Tin (000426.SZ), a mining company, in an interview with Beike Finance. "The increase in metal prices is definitely beneficial for our company's performance."
"Currently, the rise in silver prices is certainly advantageous for us in the short term, but predicting future price movements is difficult," said a representative from Yuguang Gold & Lead (600531.SH), a leading silver producer, to Beike Finance. "Silver and other precious metals experiencing rapid price surges are often not just influenced by supply and demand, but also by speculation. Therefore, we cannot rule out the possibility of a significant price drop in the short term."
As a precious metal with both financial and industrial properties, silver’s demand includes industrial use, investment, jewelry, and silverware, with industrial demand accounting for more than half. In recent years, the demand for silver in photovoltaics has continued to grow, while supply-side growth remains limited, making the expected supply-demand imbalance a fundamental driver for silver price increases.
However, some institutions believe that silver prices may currently be experiencing irrational growth and advise investors not to excessively chase prices.
Silver futures have continued to set new price highs. Since March this year, precious metals, including gold, silver, and copper, have been on a rapid upward trajectory, with prices continuously rising. Even after breaking the 11-year price high, silver prices in the domestic futures market have not slowed down.
