The Silver price yesterday almost reached the record high of $54.5 per troy ounce recorded four weeks ago again, Commerzbank's commodity analyst Carsten Fritsch notes.

Silver is on track for a strongest weekly gain in five months

"During the course of trading, however, there was a reversal that caused the price of Silver to fall by almost 2%. The main reason for this was likely the simultaneous decline in the price of Gold. In addition, the previous price increase was probably somewhat exaggerated, which was also reflected in the decline in the Gold/Silver ratio to below 78, bringing this indicator close to its annual low in mid-October."

"Despite yesterday's decline, Silver is on track for its strongest weekly gain in five months and would record its highest weekly closing price ever if it closes at $52 or above today. Tailwinds came this week from the IEA's forecast of a sharp rise in electricity demand over the next 10 years, as Silver plays an important role in power generation and transmission as well as in electric mobility."

"According to the Silver Institute, electrical and electronic applications account for nearly 70% of industrial Silver demand now."