Brexit Helps Push Silver Value to 23 Month High

2016 has certainly been kind to precious metals, but this past week has seen gold and silver reach new highs that haven’t been witnessed in a long time. Silver in particular has made the best gains, and reached $19.75 per ounce before the market closed on Friday. Silver hasn’t been that high since August of 2014.

This isn’t a gradual increase either. It’s an explosive growth spurt. Just three months ago silver had reached an 11 month high. Now silver prices have reached a 23 month high. Several factors appear to be influencing these gains, including a weakening dollar, and the fact that the Fed may cut interest rates in light of the Brexit vote.

The Brexit vote fueled the price of gold after the British pound fell precipitously on June 23rd. The Brexit has also prompted speculation over the stability of the EU, after political figures in several EU nations demanded or considered their own referendums. The threat of an EU collapse was partially responsible for investor demand for gold before the metal’s price plummeted in 2013.

Still, silver is being seen as the real winner after the Brexit vote. Silver not only increased in value, its gains were much higher than gold’s. The gold-silver ratio fell to 67.95 to 1 on Friday, the lowest it has been since August of 2014.