multistrikevideopoker| All contracts, daily limit

After a brief pullback, silver continued to "soar". On May 20, all the contracts of Shanghai Bank futures rose to a stop, and the main contracts soared to 8211 yuan / kg. Spot silver prices in London hit another all-time high of $32 an ounce.

In the view of industry insiders, the slowdown in inflation has stimulated the Fed to raise expectations of interest rate cuts, and the structural shortage of silver has become a hot market this time.MultistrikevideopokerThere is reason to believe that silver may be on the brink of a bull market.

The limit for all contracts of Shanghai Bank of China

On May 20, silver ran "wild" on the skyrocketing track. Shortly after the opening, all Shanghai Bank contracts hit the limit, the main contract 2408 slightly fluctuated to hold the limit, the futures price soared to 8211 yuan / kg. At one point, the silver futures price of COMEX soared nearly 4%.Multistrikevideopoker.7 percent, breaking through the important mark of 32 US dollars per ounce, reaching an 11-year high.

On the spot side, spot silver prices in London stood at $32 an ounce, just a weekend after breaking through an all-time high of $31 an ounce. On Friday, Loco-London silver jumped to $31.575 an ounce, the highest level since mid-February 2013, and rose more than 6 per cent on the day. Spot silver prices in London have risen more than 42 per cent since March.

In the recovery since the end of March, as central banks continue to buy, gold prices continue to hit record highs, attracting the attention of global investors, and the gold-silver ratio continues to widen the gap. Despite its good performance, the price of silver has been slow to exceed its all-time high. Recently, the increase of silver is significantly higher than that of gold, and the ratio of gold to silver has begun to shrink.

Changjiang Securities Research News pointed out that this round of silver has outstanding advantages compared with 2020, which is reflected in three aspects: lower inventory, better supply and demand structure, lower valuation, lower institutional control, and more real feedback of silver price on market supply and demand.

Two major factors push up the price of silver

Why does silver soar? Weaker inflation "rekindled" Fed interest rate cut expectations, silver supply and demand structure is tight as the main reason.

Xia Yingying, a precious metals analyst at South China Futures, believes that the main factors driving the rise in silver prices are as follows: first, domestic silver futures and gold exchange silver inventories continue to disappear, reflecting strong table demand, and supply and demand fundamentals support silver prices to break upward. Second, from the perspective of macro factors, April CPI data show that US inflation has slowed down, the Fed's expectations of cutting interest rates in September are heating up again, and it is impossible to falsify the expectations of September rate cuts in the short term.

Guoxin Futures Research report shows that although the risk aversion and investment properties of silver are not as good as gold, but in the context of gold prices hitting record highs, funds began to turn to silver as a long allocation. At the same time, silver's own industrial attribute gives it better price flexibility.

It is understood that the industrial demand for silver covers many key areas from high-tech electronic products to renewable energy, medical and health care, and the comprehensive effect of these needs makes the silver market show the characteristics of diversification and high complexity.

"despite the lacklustre performance of the silver market over the past few years, there are a number of potential factors that suggest that silver may be at the forefront of one of the strongest upward cycles in history." Liu Guangyuan, a precious metals analyst at Huaan Futures, believes that structural shortages may be the key to the strengthening of silver.

Supporting data is that the World Silver Association recently announced that the total global silver demand in 2023 will be 35551 tons, and the global silver gap will be about 4400 tons in 2023. Driven by the recovery of mineral silver production in 2024, the total global silver supply will increase by 2% to 3%, reaching more than 31700 tons; the total silver demand is expected to increase by 1% to more than 36700 tons; and the gap between supply and demand will remain high, reaching about 5000 tons.

Will there be a bull market in silver?

After gold, silver is seen as the next commodity to explode.

Everbright Futures said that the strong mood of gold is gradually transmitted to the silver market, and the current gold-silver ratio is at an all-time high. From the perspective of the return of the gold-silver ratio, the upward elasticity of silver is significantly higher than that of gold, which will undoubtedly push the trend of gold and silver to another wonderful part.

"looking ahead, there is reason to believe that the silver market may be on the brink of a bull market." 'Although there is uncertainty in the market, the fundamentals of silver remain strong, 'Mr. Liu said. In particular, we need to pay close attention to the changes in incremental demand in the industrial sector, especially in the photovoltaic industry, as this will be a key factor affecting the future trend of the silver market. With the increasing global attention to clean energy and sustainable development, silver as a key material in the photovoltaic industry, its market demand is expected to further grow, thus bringing new growth opportunities for the silver market.

Editor: Guo Chenxi proofread: Zhang Yutu edited: you Feifei