Silver's Explosive Move: A Closer Look at the 2024 Market Dynamics

Silver prices may experience an "explosive" rise in 2024 if global supplies continue to fall short of demand and the Federal Reserve follows through with interest rate cuts. While silver has underperformed gold this year, analysts believe the opportunity to buy silver at bargain prices may be closing. The most-active March contract for silver futures settled at $24.39 an ounce, with prices up 6.4% for the session. Silver's recent underperformance can be attributed to a lack of investment demand due to rising interest rates. However, the prospects of interest rate cuts and a weakening U.S. dollar have provided support for silver prices. Additionally, global supply of silver is expected to fall short of demand for the third consecutive year, making the fundamentals for the silver market extremely bullish.