Investing.com: Silver "Won't Lose Its Luster Long-term" Despite Economic Headwinds, BofA Says
Article by Scott Kanowsky in Investing.com
Silver prices could see headwinds in the near term due to broader economic uncertainty, although the metal has received support from global consumption outpacing supply, according to analysts at Bank of America.
A stronger US dollar and weak industrial activity has placed pressure on silver recently, while President-elect Donald Trump's plans to impose strict import tariffs on Canada and Mexico -- key suppliers of the metal to the US -- have threatened to dislocate silver markets, the analysts said in a note to clients.
However, silver's price has hovered at around $30 an ounce over the past nine months. By 04:02 ET on Thursday, silver was trading up by 0.5% at $30.81.
The BofA analysts led by Michael Widmer argued that, in their view, this resilience has been tied to "consistent silver market deficits", with "limited mine production growth, a key source of price support" in particular.
Global consumption of silver outpaced .....