Economy and Finance
Silver Explodes: Precious Metal Price Reaches 11 Month High
Is gold and silver finally ready to break out and recover from the losses of the past few years?
In recent months a lot of attention has been given to gold. After a decade long rally that saw its price rise above $1,800 per ounce, gold has disappointing investors after floundering for the past 3 years. But now the precious metal is rallying again. The price of gold has increased by 17% this year, making the 1st quarter of 2016 the most impressive in 30 years.
Silver however has been lagging behind. Despite normally keeping pace with gold, silver has only increased 8% this year, but that may be about to change. Silver was up by more than 4% on Tuesday and briefly reached over $17 an ounce; the highest it’s been in 11 months. It’s believed that the gold-silver ratio is what’s driving the price. The two metals typically rise and fall together, and investors believe that silver is poised to catch up to gold.
But more than that, the price of both metals has grown in light of a weakening dollar, volatile markets, and concerns that a major recession is on its way. Most hedge funds are currently betting that the gold rally isn’t over yet, and the number of contracts on gold futures hasn’t been this high since 2012.
What do you think? Is gold and silver finally ready to break out and recover from the losses of the past few years?
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