Silver Strong in June, Continues Climb in July

Published by Gold Broker | Jul 1, 2016 | Articles

Outperforming Gold in 2016

Investors and analysts are watching a remarkable rally in the price of gold this year with many predicting there is still ample room for growth in the second half of the year. Indeed, prices are vaulting for the first time in five years.

Since its peak at $51.33 in April 2011, silver has languished in the doldrums, dropping to $13.76 just before last Christmas. Friday’s close of $19.77 going into the 2016 Fourth of July long weekend is its highest level since September 2014, capping off a run in which it gained more than 16% over the month of June and over 11% in the past six days (not to mention the largest 3-day gain this year).

Brexit, Again

Of course, those six days comprise the aftermath of the UK vote to leave the European Union. The political and economic fallout of the referendum result have piqued forecasts of higher precious metal prices, including from France’s Société Générale. Gold and silver, as anybody could have predicted, are playing their “safe haven” roles in a period of volatile currencies. Purchases of physical metals are accelerating, with no end in sight to the Brexit shock.

This is by no means the only factoring contributing to silver’s rise. On this side of the Atlantic, the Federal Reserve has once again delayed a hike in interest rates. Others point to silver’s important application in solar energy technology, a booming industry that is only bound to grow now and in the future. Furthermore, demand for bullion coins is skyrocketing. 2015 saw record sales of 47 million 1-ounce American Silver Eagles.

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Gold Broker  Editorial Staff


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