Silver Was Up Almost 6% Last Month, Here's Why

(October 27,2022-Dalton Brewster)

Like Gold and other precious metals, silver is a tangible asset that is an inflation hedge. While gold was down 3% last month, silver returned 6%. Normally, gold and silver are correlated, meaning when the price of gold goes up, silver follows and vice versa.

However, silver has unique uses that caused it to produce positive returns. There is a large growth in industrial demand, especially solar panels.

Silver is a main component to silver panels which will become even more popular with the passage of the Inflation Reduction Act, the largest-ever federal investment in renewable energy. As a result, some of the best performing S&P 500 stocks in Q3 were wind and solar companies Enphase Energy (+50%) and Constellation Energy (+45%).