According to Kitco News, growing industrial demand for silver may further reduce its investment appeal. Leading commodity traders surveyed by the platform also warned that if gold breaks through key support, silver could collapse along with platinum group metals.
Kevin Grady of Phoenix Futures and Options noted that investors are abandoning silver, which lacks the liquidity and storage convenience of gold. He explained that the white metal simply trades alongside gold and "doesn't claim to take the lead role."
Sean Lusk of Walsh Trading, meanwhile, highlighted the speculative nature of silver's stability. He emphasized that if gold falls, silver will not be able to maintain its position. Despite short-term drops below $30, the white metal recovered, but has not matched the gains of the yellow metal. Consequently, without a breakout in gold, silver's gains remain limited, Lusk added.