Silver prices averaged lower in May compared with April due to the increased cost of holding silver relative to other assets. Silver prices averaged USD 24.2 per troy ounce in May, which was down 3.1% from April’s price but was 10.5% higher than in the same month last year. Meanwhile, on 31 May, silver traded at USD 23.6 per troy ounce, which was 6.0% lower than on the same day of the previous month.
Higher Treasury yields across a range of maturities incentivized investors to move away from the non-yielding metal, dampening demand. Additionally, a stronger dollar made purchasing silver more expensive for holders of other currencies. That said, stronger demand from the photovoltaics and electric vehicle sectors will have provided support. Moreover, market expectations that the Fed will hike no further following the 25 basis point hike in May limited the price drop. Furthermore, uncertainties regarding vulnerabilities in U.S. banks, commercial real estate and the U.S. debt ceiling saga fueled safe-haven demand for silver, further mitigating the decline in prices.
This chart displays Silver (US$/toz) from 2021 to 2023.
Handy & Harman Silver (prices in US$/toz, aop)
Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | |
---|---|---|---|---|---|---|---|---|
Handy & Harman Silver | - | 26.7 | 24.3 | 23.4 | 24.1 | 22.7 | 19.3 | 21.3 |