US Federal Reserve's potential 2024 rate cuts may extend rally in silver

Investors must, however, be prepared for greater volatility in white metal

Silver exchange-traded funds (ETFs) have given a category average return of 16.4 per cent over the past year, compared to 15.1 per cent by gold ETFs. Edelweiss Asset Management Company (AMC) launched a silver ETF recently. Nine existing ETFs have assets under management (AUM) of Rs 2,845 crore. Investors need to understand the nature of this metal before including it in their portfolios.

Rising industrial demand

Rising industrial demand is the key driver of the bullish trend in silver. “The main factors driving up the price of silver over the past year are geopolitical uncertainties and demand-supply gap over the