Silver (XAG) Daily Forecast: Russia’s Central Bank Silver Reserves Boost Bullish Sentiment…

The prices of gold and palladium have significantly outpaced silver since 2011, suggesting silver could be a “strategic bargain” for Russia. On April 29, 2011, COMEX closed silver at $48.59 an ounce, whereas it now trades substantially lower.

“Silver’s rising industrial demand, particularly in photovoltaic and electrical conductivity applications, is driving tight supply conditions,” noted analysts from The Silver Institute. The institute projects a combined shortfall of 663 million ounces in global silver supply from 2022 through 2024.

In recent years, central banks worldwide have aggressively added to their gold reserves amid economic uncertainties, with nations like Poland now holding more gold reserves than Great Britain. Russia’s move to include silver adds to its recent expansions into platinum and palladium holdings, leveraging its status as a top global producer of these metals.

Market Implications and Demand Outlook

Experts speculate that Russia’s decision to acquire silver could drive its price upward by at least 50% in the next 24 months. With silver’s increasing industrial applications and tight supply conditions, Russia’s strategic move could encourage other central banks to follow suit.

Market participants will closely watch economic data from China and the U.S., as shifts in global demand and policy could influence the price trajectory for industrial and precious metals.

If successful, Russia’s diversification into silver could be a significant turning point for the global precious metals market.