Why Is Silver Still Priced Below $30? An Economic Enigma

The Silver Price Paradox

The gold price continues to reach new highs, while silver seems to be struggling to follow the same upward trend.

Recently, silver managed to reclaim the vital threshold of $29, celebrating its breakout beyond the resistance level.

However, the current price of silver remains a far cry from its historical peaks.
But is it really so distant?

Understanding Silver’s Pricing Mystery

Western investors are once again redirecting their interest toward gold, spurred by concerns over market volatility and geopolitical risks that bring the precious yellow metal back into the spotlight.

Meanwhile, a recent pause in China’s gold purchases—a strategic move to influence the market—has yet to exert a significant bearish pressure on prices.

While gold has achieved record highs this year, silver remains undervalued.

This undervaluation is attributed not only to its status as a precious metal but also to its wide industrial applications.

Silver typically aligns with the trends of gold, making its consistent price below $30 a compelling mystery.

It still sits well beneath the peaks of 2010 but could potentially revisit the $50 mark over time.

Critical Levels to Watch

The potential for silver is enormous, yet it ultimately hinges on speculative capital returning to the market.

Given the rally in gold prices, this scenario could unfold sooner than expected.

Investors might start viewing silver as a cost-effective alternative to gold—a dynamic that could rapidly propel silver prices towards $40 and beyond.

From a technical standpoint, a breakout above the $32 resistance level would be a decisive indicator for future movements.