Part 4/8:
The Industrial Demand and Cyclical Nature of Silver
Unlike gold, which is primarily driven by investment demand from individuals, institutions, and central banks, silver has a significant industrial component. It is widely used in electronics, manufacturing, and renewable energy sectors like solar panels. This industrial demand means silver's prices are more cyclical and sensitive to the health of the global economy.
Rising inflation and industrial growth could boost silver prices, benefiting from a dual tailwind of increased industrial demand and rising gold prices. However, this also introduces volatility, making silver more susceptible to short-term fluctuations.