It's been a fantastic start to the trading week for most ASX shares so far this Monday. At the time of writing, the S&P/All Ordinaries Index (ASX: XAO) has gained a healthy 0.66% and is back over 8,600 points. But some ASX silver shares are putting that gain to shame today.
The silver sector is rocketing in value on the ASX boards this session.
Take Silver Mines Ltd (ASX: SVL) shares. This silver stock closed at 12 cents a share last week. But today, those same shares have vaulted up a solid 10% and are now changing hands for 13 cents each.
ASX silver share Andean Silver Ltd (ASX: ASL) is faring similarly. Andrean stock closed at $1.35 a share on Friday afternoon. But this morning, those shares opened at $1.55 each before rising as high as $1.58 – a gain worth more than 17% at the time.
Presently, Andean Silver has cooled off but is still trading at $1.48 – up 9.26%.
Image source: Getty Images
Why are these ASX silver shares exploding this Monday?
We don't have to look too far to see why ASX investors are flooding into silver shares today.
Earlier this afternoon, we discussed the price of gold hitting a new record high, and how that has elicited more than a dozen ASX gold shares to hit new 52-week highs of their own today.
Well, a similar situation is affecting gold's fellow precious metal, silver.
According to CNBC, silver is currently fetching a price of US$34.27 an ounce, up a healthy 3.1% over the weekend.
That's after silver hit a new 52-week high of its own of US$34.33 earlier today. Not only is that a new 52-week high for silver, but also the highest this metal has traded at in more than a decade – since 2012, to be precise.
Silver has now risen by more than 37% over 2024 to date. As such, it's no real surprise to see these ASX silver shares rocket in value today.
Precious metals news site Kitco interviewed Mitchell Krebs, CEO of US-listed precious metals miner Coeur Mining, a few days ago.
Krebs reckons we could well see even higher silver prices going forward. Here's some of what he said to Kitco:
I have never seen a better outlook for silver. It's an extremely exciting time to be in the silver market… The outlook for growth in electronics is phenomenal. It's the do-it-all metal on the Periodic Table. I don't see any fundamental downside to silver…
We are not able to keep up with demand, and I don't know where the supply on the production side will come from. With these supply issues and the current demand profile, I see these deficits [in the silver market] continuing.
So, it seems that the huge run that the silver price has been on in recent months is flowing into ASX silver shares like Andean and Silver Mines this Monday. It sure is a great start to the trading week for silver investors, but let's see what happens next.
