The price of silver fell more than 1.96 percent in the second quarter, dipping below the US$17.00 safety benchmark towards the end of April, where it would stay for the remainder of Q2.

A strong US dollar, stagnant investor demand and silver’s inability to attract the height of safe-haven demand that has supported gold, stifled silver in the second quarter. While gains were made on the back of geopolitical concerns at the beginning of Q2, much like the situation with gold, investors were not interested in holding the precious metal in their portfolios during market uncertainty.

Despite silver’s performance in Q2, many industry insiders believe that it will rebound by becoming a more appealing safe-haven commodity and from its growing demand through solar panel and jewellery consumption. Insiders see the white metal increasing towards the end of September and in the perfect position to finally outperform gold.

Read on for an overview of the factors that impacted the silver market in Q2, plus a look at what investors should watch out for in the next few months of the year.

Silver price update: Q2 overview

The price of silver slid 1.96 percent in the second quarter. As the chart below from Kitco shows, the metal experienced mostly declines during the period, but reached its lowest point at the beginning of May.


Chart via Kitco

Silver hit its lowest point in Q2 on May 1, trading at US$16.14 per ounce. The metal decreased on the back of a strengthened US dollar. Also at this time, the gold/silver ratio climbed back up to 80 after briefly falling to 70.

When compared to silver’s lowest point of US$17.54 in Q1 2018, the metal’s struggle in the second quarter becomes even more apparent.

Meanwhile, the precious metal found its highest point on the morning of April 19, reaching US$17.22. On that day, prices built on the 2.5 month-high the metal experienced in the previous session due to technical trading and a weaker US dollar.

Silver price update: Key drivers

As the third quarter of the year begins, investors interested in the silver market should be aware of a number of factors that could impact the precious metal’s price.

Most analysts agree that the greenback’s movements, geopolitical tensions and growing demand will be key drivers for the silver price for 2018.

With the US dollar consistently