**Silver as a Store of Value** Silver prices can change due to many factors, like geopolitical tensions and worries about a recession. As a safe-haven asset, silver often rises when interest rates are lower since it does not earn interest. The value of the US Dollar also impacts silver since it is priced in dollars. Other factors include the demand for investment, the supply from mining, and recycling rates. Silver is widely used in industries, especially in electronics and solar energy, thanks to its excellent electrical conductivity. Global economic trends, particularly in the US, China, and India, affect demand for silver jewelry. Prices of silver often follow those of gold because they are both seen as attractive safe-haven investments. **Trading Momentum and Investment Strategies** Currently, silver is priced at $62.00 an ounce, showing a remarkable increase of 114% since the start of the year. This momentum, fueled by investment and industrial demand, indicates that we could see significant price volatility ahead. Traders dealing in derivatives should brace for rapid price changes in the coming weeks. Much of this price rise is linked to market expectations that the Federal Reserve may start lowering interest rates in early 2026. The US Dollar Index dropped nearly 5% last quarter, a trend that typically boosts metal prices. This situation makes strategies like buying call options or long futures contracts attractive to take advantage of the current trend. Aside from monetary policy, industrial demand for silver is exceptionally strong, especially from the green energy sector. We expect a 30% growth in global solar panel installations by 2025, which will directly increase silver consumption. This base support could help soften any small price dips and boosts positive outlooks. However, after such a sharp rise, we must be cautious about a potential correction as traders may want to secure profits before the end of the year. The silver squeeze of early 2021 serves as a reminder of how quickly a speculative rally can change. Buying put options could be a smart way to protect against or profit from a sudden drop. The Gold/Silver ratio has decreased to 67.96, indicating that silver is doing better than gold and narrowing the earlier valuation gap. Some think this ratio might drop closer to its historical average of around 60, but its recent rapid decline might mean that silver’s rise is reaching its limits. This makes spread trades between gold and silver futures an interesting option right now. Create your live VT Markets account and start trading now.

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