The metal has recovered more than 18% this week, peaking at $ 23.24 an ounce. It is up 28% this year.
The jump is even outpacing earnings in gold, which has topped $ 1,800 per ounce and is now approaching a record high of $ 1,920 per ounce reached in 2011. Its last listing was $ 1,882.34, a 24% increase from that goes of the year.
The rush to buy precious metals comes as investors search for reliable stores of value due to fears about the global coronavirus recession and the strength of the recovery. A weaker dollar is also making it cheaper for foreign investors to buy gold and silver, while fund interest rates make other typical safe-haven investments, such as U.S. Treasury bonds, appear less attractive. .
Silver is a key component in electric vehicles and the increased demand for renewable energy solutions is also likely to contribute to its price increase. Half of all demand for silver comes from industrial buyers.
Often nicknamed the poor man’s precious metal, is now the silver moment in the spotlight? The price is expected to rise further, but some analysts remain cautious.
“Harvest [market] However, the highest in this environment is a dangerous occupation, and only for the brave, heavily bagged or foolish, “said Jeffrey Halley, senior market analyst at Oanda.
In addition, other assets such as stocks tend to produce much better returns in the long term, said Deutsche Bank strategist Jim Reid.
Mining stocks that give exposure to silver, such as those listed in London Fresnillo (FNLPF), have given investors excellent results so far this year. Shares of the Mexican company have risen more than 90% to trade at £ 12.32 ($ 15.67) per share. Listed in New York Endeavor Silver (EXK), Big panther (GPL) and Fortuna Silver Mines (FSM) I have also seen huge gains this year.
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