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This blog discusses The Perth Mint's bullion coins and bars, providing information about our latest designs, mintages, sales volumes and sell outs. On a broader front, we share relevant research and opinions for anyone interested in gold and silver bullion investing.

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Big week for silver

Topics [ silver bars silver silver coins ]

SILVER

After a long time in the doldrums, the price of silver is stirring again. In a nutshell, here’s what's happening.

Silver futures in New York jumped above US$17.00 overnight to reach a 10 month high.

The price of silver is up more than 20% since the beginning of January.

The grey metal has achieved the best return this year of any in the Bloomberg Commodity Index.

The gold/silver ratio has fallen from 83:1 to around 74:1, meaning it now takes eight fewer ounces of silver to buy an ounce of gold. (The long term average is around 50.)

Silver hit almost US$50 per ounce five years ago this week.

 

Despite the Australian dollar’s recent strength, silver is also trading
higher in the local currency. [The Perth Mint silver price chart 21.4.16].

While the price of silver tends to follow gold, it is significantly more volatile. Over time it has shown that it can jump with sudden, intense movements.

Explanations put forward for silver’s latest rebound include falling silver production and rising bullish bets from investors thanks to the big move in the gold/silver ratio.

Above all, say analysts, is the improved outlook for industrial demand based on better expectations for China’s economic growth.

Charts published by Bloomberg suggest the price of silver is set fair for further gains. Time will tell if silver is ready to shine again or whether this rally destined to run out of steam.

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