The Strategist

Prices for silver update multi-month high

07/14/2020 - 06:44

The price of silver updated a ten-month high, gaining a foothold above the level of $ 19 per ounce. The rise in prices is associated with a weakening US dollar, rising inflation expectations, as well as industrial demand, in particular from the green energy sector. In such conditions, investors are actively increasing investments in index funds, whose assets have updated a multi-year maximum of 25.4 thousand tons.

Sprott Money via flickr
Sprott Money via flickr
The price of silver on Monday, July 13, updated a multi-month high. According to Reuters, during the day the price of the precious metal rose by 3.4%, to the level of $ 19.31 per troy ounce, the maximum value since September 5, 2019. A steady increase in silver prices continued for the fourth consecutive week, and during this time it went up by almost 11%. Other precious metals also added in price, but less significantly. Since mid-June, gold has risen in price by 5%, to $ 1812 per ounce, platinum - by 3%, to $ 845 per ounce, palladium rose in price by 8% - to $ 2060 per ounce.

The renewal of the many-month high occurs against the backdrop of large-scale financial incentives announced by the authorities of developed countries to maintain national economies.

The rise in prices for precious metals contributes to the weakening of the US currency. On Monday, the DXY index (the dollar against six leading world currencies) fell 0.4% to 96.27 points, approaching the lowest level for the last month.

In such conditions, investors are actively increasing investments not only in gold, but also in silver. According to the latest Bloomberg data, last week the assets of silver funds rose by 517 tons and amounted to 25.45 thousand tons.

Additional support for silver may come from the recovery in demand from real sectors of the economy: electronics and microelectronics, medicine, the jewelry industry, the chemical industry, as well as green energy.