Silver futures are poised to close higher for the second consecutive month, reaching nearly $25 per ounce, marking a two-month high. The white metal is set to wrap up November with an impressive 8% gain, building on the previous month's 2.2% increase. Despite typically mirroring gold price trends, silver has outperformed in November, propelled by worries about the supply of industrial silver amid robust demand.
The Silver Institute has highlighted a projected 2% global drop in mined silver production for 2023, primarily driven by decreased output from key producers Mexico and Peru. Mexico's production is expected to plummet by 16 million ounces due to the suspension of operations at Newmont?s Pe?asquito in response to a labor strike in the second and third quarters.
Meanwhile, heightened investments in solar panels, power grids, and 5G networks have spurred market forecasts of an 8%-10% surge in silver demand. Additionally, a more than 3% decline in the US dollar, coupled with expectations that the Federal Reserve has concluded interest rate hikes, has further bolstered international silver prices.
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