cryptoilluvium| Silver is also crazy! It has risen even faster than gold. Is it too late to get on the bus now?
"I bought it a month ago.CryptoilluviumAfter 30 kilograms of silver, he has made about 15000 yuan so far. " On May 21, when a Chinese reporter from a securities firm visited Tianya Jewelry City in Beijing, some employees said.
Precious metals have risen sharply recently, with silver surpassing gold, which has also stimulated some investors to enter the market. On the one hand, the number of people buying silver bars and funds linked to silver futures is increasing, on the other hand, recovery prices have risen, and some investors have also taken profits in this rise.
Looking ahead, most institutions now believe that silver still has room to rise. However, precious metals analyst Ma Yinchen suggested in an interview with a Chinese reporter from a brokerage that silver is riskier and investors cannot copy the price logic of gold to analyze the trend.
Rise more sharply than gold.
Despite small swings on May 21 and 22, the prices of gold and silver remain at their highest levels in recent years. As of May 22, COMEX gold is 2416.Cryptoilluvium.6 USD / oz, COMEX silver is 31.96 USD / oz. Compared with the beginning of 2024, the two increased by 16.66% and 32.67%, respectively. It is clear that silver has risen more than gold.
Spot silver, as of press time, was 31.75 US dollars / ounce (equivalent to 7.42 yuan / g), slightly lower than the previous day.
The higher price of silver has also attracted a lot of investors. On May 21, a Chinese reporter from a securities firm visited Tianya Jewelry City in Beijing as an investor. Here is called Beijing's "water shellfish" market, mainly wholesale. Some precious metals traders said that silver was out of stock some time ago because production failed to keep up. Recently, silver production is abundant, but recently some people have been buying silver. Although they will not run out of stock, they do not deny that they are nervous.
The reporter noticed that UBS futures LOF, as the only silver futures fund in the public offering market, also received a lot of attention. The fund's share has continued to grow after a sharp decline since April 24, reaching more than 1 billion shares on May 22, according to Wind. Compared with a week ago, the share increased by 197 million and by 436 million compared with the same period last year.
In fact, the silver rally began at the end of February and continues to this day. Ma Yinchen analysis said that the recent rise in silver prices, first, driven by higher gold prices, promoted market speculation; second, silver itself demand side factors to support the price.
The market is still betting on a rate cut by the Fed, she said. In this expectation of loose monetary policy, the safe-haven function of precious metals has been highlighted, pushing gold and silver prices higher. At the same time, the silver market has shown some tight supply and demand in the past few years, and as the global economy continues to recover, the increase in manufacturing and industrial production activity has boosted silver's industrial demand, which is also good for silver prices.
Some investors have begun to take profits.
"I can't buy gold. Buy some silver."Silver has got off the bus, and a bonus is enough."the real thing is out, and it's safe to drop the bag." On social media, because of the higher unit price of gold, some investors are turning to cheaper silver, buying silver bars or funds, but others have begun to take profits.
On the precious metals trader financing gold platform, which has attracted the attention of ordinary investors, the resale price of silver is rising. At 10:00 on May 22nd, the platform offered a resale price of 7.7yuan / g, up 1 yuan per gram from the beginning of May.
Xiao Zhang (not his real name) has made a profit by selling several pieces of silver jewelry in this wave of rise. She told Chinese brokerage reporters that she began to "hoard" silver about two years ago, mainly in gram-denominated silver bracelets. Recently, she sold about 500 grams of silver, as well as a lot of 925 silver ornaments. Among them, the recycling platform can earn about 2 yuan per gram, and the second-hand platform can earn more. She said that although it is a second-hand commodity, there is no discount, and the unit price above 200 yuan can basically earn another 40 yuan.
In fact, not only ordinary investors, Tianya Jewelry City is mainly for big customers, silver bars are more than 3 kilograms. During the reporter's visit, a number of precious metal traders also said that silver has risen sharply recently, and many investors have come to sell silver bars and silver plates. Some shopkeepers said that some consumers brought dozens of kilograms to sell. Some shopkeepers said that their stores also sold more than 70 kilograms of silver plates on May 20, equivalent to less than half of the store's inventory.
Most of them are bullish on silver, but the high risk should not be underestimated.
Some people enter the arena and some people leave the arena. How to get to the silver market after all? Can you still "get in the car"?
Ma Yinchen said that from the perspective of the Fed's monetary policy, the performance of the US CPI in April increased market expectations of future Fed interest rate cuts, which will continue to provide action energy for precious metals such as gold and silver. In addition, the ratio of gold to silver, which measures the price of gold and silver, is still at a relatively high level in history and much higher than the historical average. In the future, with the gradual recovery of economic activity, the gold-silver ratio is expected to be repaired, which means that the price of silver will have more upward space relative to the price of gold.
The latest research reports released by a number of futures institutions are also bullish. As Shenyin Wanguo Futures pointed out, the gap in silver may continue in 2024, and the overall strength of gold and non-ferrous metals will be further transmitted to silver and magnify its elasticity. However, some institutions suggest that at the current stage, most of the irrational elements in the market, so the uncertainty of the market will be significantly enhanced.
Ma Yinchen said that silver relative to gold, because the price is relatively low, so the threshold for investment is also relatively low. However, it is important to note that the volatility of silver price is higher than that of gold price, which means that the risk is relatively high.
She mentioned that although silver and gold are both precious metals, the logic behind their price movements is different. The price of silver is also largely affected by its industrial manufacturing demand, so investors cannot copy the price logic of gold to analyze the trend in the face of the overall rise in the precious metals category.
