Q2 2023 has been an exciting time for investors in silver. Following a sluggish start to the year, the price of silver has rebounded and saw some major fluctuations over the last three months. This silver price update takes a look at some of the key drivers of silver’s performance in Q2 2023.
The primary influence on silver prices in Q2 2023 was the continuing global economic recovery. As governments around the world gradually eased lockdown restrictions, consumer spending began to increase and this helped to bolster demand for silver around the world. This, coupled with a weak US dollar, provided silver with a favourable environment for price increases.
The US economy also proved to have a significant impact on silver prices. The Federal Reserve announced it was ending its bond-buying program in April, which had an immediate effect on the silver market. As investor interest in risk assets waned, silver prices fell to a low of $15.90 in early May. However, sentiment soon improved as the economy continued to reopen and silver prices quickly bounced back.
The Chinese economy also had an impact on the silver market. China accounts for around 30% of global demand for silver and it has been instrumental in driving prices higher this quarter. With a strong economy and demand for industrialised goods increasing, Chinese investors have been buying up silver. This has helped to boost prices in the region and resulted in positive growth for silver internationally.
Finally, geopolitical tensions had a big influence on silver prices. The increasing US-China trade war in Q2 caused price volatility, as traders scrambled to protect their investments. This created an uncertain market and led to sharp price swings.
Overall, the silver market in Q2 2023 was a volatile one, with price fluctuations driven by global economic news and geopolitical tensions. Yet, silver prices ultimately ended the period on a strong note, with prices increasing by 9.2%. This is good news for investors in silver, who can look forward to more favourable market conditions in Q3.
