– Long-term factors support optimism
Lagos — Silver prices held steady on Tuesday after Monday’s rebound, as investors reassessed recent market turbulence driven by escalating trade tensions. After a sharp drop, silver regained footing amid renewed interest in safe-haven assets and growing expectations of further monetary easing by the Federal Reserve.
China’s announcement of 34% tariffs on US goods, effective April 10, intensified recession fears but also reinforced the appeal of defensive assets like silver. Despite short-term headwinds, the metal remains underpinned by solid long-term fundamentals.
Industrial demand for silver is projected to surpass 700 million ounces in 2025, driven by applications in green energy and technology. At the same time, a fifth consecutive annual supply deficit is expected, tightening market conditions.
If upcoming US economic data show signs of easing price pressures, expectations of interest rate cuts could grow, further supporting silver’s upward trajectory.
*Bas Kooijman is the CEO and Asset Manager of DHF Capital S.A
