Technical: COT Report: 05/14/24 - we received the highest net positions of the 26 week at -81,422
Key Drivers of Silver Demand: Fundamentals
Semiconductors: Silver's conductivity makes it essential in semiconductor chips, printed circuit boards, CPUs, and mobile phones. The global semiconductor shortage has highlighted silver’s irreplaceability in electronics. IoT Devices: Silver is crucial in the electricity transfer for IoT devices and 5G technology. Demand for silver in these areas is expected to increase by 200% by 2030. Cabling: Silver is used in high-performance wires and cables for applications like recording studios and aerospace, where its conductivity outperforms copper. Water Purification and Filtration: Silver's antibacterial properties are used in water filters, food packaging, refrigerators, and pool filtration systems. Medical Applications: Silver’s antibacterial properties are utilized in medical bandages to prevent bacterial infections and improve healing times in burns and wounds.
Summary: Recent downtrend following the Swiss Bank's interest rate reduction from 1.75% to 1.50%. Signs of potential CHF strengthening post Non-Farm Payroll week.