Silver prices rallied in European trade on Tuesday to a two-year high, extending gains for the fifth straight session and trading above $26 for the first time since 2022 on strong retail demand.

Retailers have recently noticed that silver isn’t moving in tandem with gold, which recently hit record highs at $2200 last week, in turn triggering a late boom in silver prices.

Prices

Silver prices rose 1.6% to $26.55 an ounce, the highest since March 2022, after rallying 4.2% on Tuesday, the fourth profit in a row, and the largest in 2024.

The gains come in tandem with a surge in gold prices and strong haven demand.

Retailers

As retailers seek assets to guard against potential risks as global central banks change their policies to a more accommodative direction, it’s clear that silver is becoming an excellent under-valued choice.

The recent silver surge tipped off many retailers that silver remains far from its true value compared to gold, which is trading at record highs.

Gold hit a record high of $2288 an ounce on April 3, while silver is very far away from its record high of $49.78 scaled in April 2011, in turn triggering strong demand on the white silver for its potential hidden value.

Historically, silver had usually taken widen movement arcs upside and down compared to gold, however recent times were an exception, with retailers now paying more attention to the missing silver value.

Silver Forecasts

The Silver Institute expects 2024 to be an excellent year for the white metal, with prices potentially hitting 10-year highs.

The Institute expected total global demand to reach 1.2 billion ounces in 2024, the second highest on record.