Bulls Discover a Silver Lining
Silver advanced as much as 3.5% and touched a 10-month high. On the other hand, gold rose 0.9% and the gold-silver ratio fell. Assets in exchange traded funds rose to a record 5.3%, the biggest jump since 2010
Eddie Van Der Walt & Jasmine Ng
New York: Silver is poised to enter a bull market after prices jumped to a 10-month high and as investors pile into precious metals, with top forecasters’ staying positive on gold. Silver advanced as much as 3.5% to the highest level since June and traded up 3% at $16.7065 an ounce by 7:36 am in New York. A close at that level would mark the start of a bull market.
Investors have been pouring cash into silver, known as the devil’s metal because of its often wild price swings. Assets in exchange-traded funds are approaching a record and last month total holdings increased 5.3%, the biggest jump since 2010, according to data compiled by Bloomberg.
Trading volume for silver in New York was almost triple the average for the time of day. The gains were amplified by big orders that triggered automated short-covering, according to Afshin Nabavi, head of trading and physical sales at MKS (Switzerland) SA.
Silver, which has more industrial uses than gold, has risen more than 20% this year and is the top asset in the Bloomberg Commodity Index.
Gold rose 0.9% to $1,243.26 an ounce. The gold-silver ratio, which measures the price of one divided by the other, fell to the lowest level this year. — Bloomberg