Silver prices are still far from the multi-year high reached in May, says Carsten Fritsch, commodity analyst at Commerzbank.
Low Silver Price Boosts Buying Interest
“Silver prices are still far from the multi-year high reached in May. The price increase to $29 per troy ounce only offset losses since the middle of last week. The gold/silver ratio thus remains at a high level of 85. In comparison, it was 73 at the end of May and 75 ounces at the beginning of July.”
“Apparently, the comparatively low price of silver is driving buying interest among ETF investors. According to Bloomberg data, silver ETFs have seen strong inflows since mid-July. Over the past two and a half weeks, these have totaled around 1,030 tonnes. Most of the inflows took place in the days immediately following sharp price declines, supporting the above thesis.”
“However, the purchases did not have a visible positive effect on the silver price. The recent price increase was more due to hopes for an upcoming interest rate change in the US. Therefore, weaker US labor market data this afternoon could also push the silver price higher.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
