Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Hi Ho Silver! White Metal On Bull Run

  by    0   0

As Peter Schiff put it in his recent podcast, “Hi ho silver seems to be the rallying cry for the day.” (Scroll down to watch the full podcast.)

Last month, we reported silver could be poised to come out of the shadows. It certainly has – in a big way. Silver cracked $17 per ounce Tuesday, hitting its highest level in more than 10 months. On Monday, Bloomberg declared it a bull market:

Silver entered a bull market after climbing to a 10-month high amid positive signs for Chinese industrial demand and decreasing bets the Federal Reserve will raise US interest rates.”

silver chart

The silver price has increased more than 23% since the first of the year, outperforming gold.

Chinese buying has buoyed the silver market. With the Chinese economy stabilizing, many analysts believe this will continue to drive industrial demand for silver. Reuters reported recent heavy silver buying in Shanghai also triggered purchases of gold.

But the silver rally appears to be much more broad-based than that. CNN Money notes buyers in Europe and Asia seeking safe haven are helping drive demand for silver, due to aggressive central bank monetary policy and the proliferation of negative interest rates.  US News summed it up this way:

The money-printing programs of the Federal Reserve, European Central Bank and other similar institutions have some investors increasingly concerned about whether paper money will hold its purchasing power over the long term.”

Silver coin sales demonstrate the robust investor demand for the white metal. Silver bullion coin sales surged in 2015, and they’ve continue to sell at a rapid clip this year, as US News reports:

Investor demand for silver has historically been a driver of prices, rather than its use in industrial processes such as jewelry manufacturing or electronics. One indication of burgeoning investment demand is the market for solid silver coins, such as those made and marketed by the US Mint. Silver coin sales in the first quarter increased 23% from a year ago to 14.8 million ounces, according to a research note from CPM Group.”

The US Mint sold more than 4.1 million Silver Eagles last month, compared with 3.5 million in March 2015. Sales haven’t slowed this month. With a week and a half left, Silver Eagle sales have already eclipsed last year’s April total.  The mint continues to sell out of its weekly allocation Silver Eagles. Sales for the year have now eclipsed 17 million– 26% higher than the same period in 2015.

As we reported last month, the demand for silver jewelry is also strong, and supply is expected to shrink, with mining output projected to fall by as much as 5% year-on-year in 2016.

Jeff Christian, managing partner at consulting firm CPM Group in New York, told US News he sees silver continuing on its bullish path:

We are seeing very strong investment demand and that makes me think silver prices can move higher.”

SchiffGoldSilverReport590

Get Peter Schiff’s most important Gold headlines once per week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning more about physical gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Silver Demand Expected to Exceed 1 Billion Ounces in 2021

Every key area of silver demand is forecast to rise in 2021, according to the Silver Institute’s Interim Silver Market Review. The institute projects silver demand will come in at 1.029 billion ounces this year. That would mark the first year demand has exceeded 1 billion ounces since 2015.

READ MORE →

Jerome Powell 2.0

President Joe Biden has tapped Jerome Powell to serve a second term as chairman of the Federal Reserve. Biden said Powell’s “steady leadership” helped calm markets as governments shut down the economy due to coronavirus, and he expressed confidence in Powell’s future leadership. “I believe Jay is the right person to see us through,” Biden […]

READ MORE →

The Fed Pulled Off a Masterful Manipulation of the Junk Bond Market

The Federal Reserve pulled off a magnificent manipulation of the junk bond market, facilitated a massive wealth transfer from savers to speculators, pocketed millions of dollars, and then washed its hands of the matter. In March 2020, as governments shut down the economy for coronavirus, the Fed slashed interest rates and launched a massive quantitative […]

READ MORE →

Poland Plans to Add Another 100 Tons of Gold to Its Reserves

During a recent interview, Bank of Poland President Adam Glapiński said the central bank plans to add 100 tons of gold to its reserves in 2022. In 2018, the National Bank of Poland began aggressively adding gold to its reserves. Through the first half of 2019, the Polish central bank added more than 100 tons of […]

READ MORE →

The Fed’s Artificially Low Interest Rates Are Eating Away at Social Security

The Federal Reserve has held interest rates artificially low for decades. This causes all kinds of distortions and misallocations in the economy. And it’s creating quite a problem for the Social Security Administration.

READ MORE →

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Call Now