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

The Economic Times - - Commodities Plus -

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

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