The price of silver has shot up. The Polish giant has something to be happy about

• Silver prices are rising due to the situation in the Middle East.
• The precious metal is performing better on the market than gold, although analysts are convinced that the barbaric relic will also become more expensive.
• The key supplier of the metal is our KGHM, which is considered the largest silver mine in the world.

An ounce of the precious metal is currently being paid for as much as $37.32 in spot (instant) transactions. This means that since the beginning of the year, its price has increased by less than 20 percent. It is worth recalling, however, that at the end of March, an ounce of silver was paid for as little as $28.86.

Silver is performing better on the market than gold

What is driving the rise in silver prices? The biggest influence is the geopolitical situation in the world. When it worsens, the precious metals become more expensive. Gold prices have shown this best for years.

However, the yellow metal is currently so expensive (around $3,390 spot per ounce) that not everyone interested in investing money in the precious metal invests in it. Especially since in recent years large amounts of gold have been bought by financial institutions and individual countries . Silver is currently more accessible to the "ordinary bread eater" and this is what has caused the increase in interest in this metal.

In the case of the overnight from Tuesday to Wednesday, the rise in silver prices came after speculation that the US was preparing for a more direct intervention in the Israeli-Iranian conflict, which is increasing uncertainty in global markets.

It is worth adding that silver behaves better than gold . In comparison, while the former's prices were rising, the barbaric relic was almost at a standstill.

Moreover, as analysts note, the price discrepancy between gold and silver currently remains close to the lowest level in three months.

“At first glance, gold’s reaction may seem surprising given the potential fallout from the conflict, as well as the typical nervousness of more short-term traders in the market,” Carsten Menke, head of next-generation research at Julius Baer Group, told Bloomberg.

He also noted that in recent years silver has been reacting more vigorously to all types of conflicts.

Despite everything, analysts are convinced that gold will also go up in price. It simply needs a breather after a record-breaking April, in which an ounce set an all-time price record of $3,500.

Thanks to the growth in Lubin, champagne corks may be popping

The current market situation is pleasing for silver producers. A 20% increase in revenue is a solid amount that will be reflected in profits.

Among the beneficiaries of the current situation is our KGHM . Although the company has copper in its name, it is in silver that it is higher in the rankings of the largest producers.

Our concern has been in first or second place in terms of metal production for years. Since KGHM mines in our country are treated as one plant by industry journals, the Polish company is considered the largest silver mine in the world.

Last year, according to the World Silver Survey, KGHM produced 43.30 million ounces of silver, outpacing Mexico-based Newmont and Fresnillo.

The latter concern, counting the entire production from all mines, is, however, the largest supplier of silver globally – the Juanicipio, Saucito, San Julian, Fresnillo and Herradura mines produced over 56.31 million ounces of silver.