Could the silver price be about to surge?

Could the silver price be about to surge? by Michael Pinson for Bullion By Post

A host of global economic uncertainties recently have seen investors turning to safe-haven assets, driving the price of gold to register several new all-time highs in Sterling.

Gold is not the only precious metal to rally however. Silver has been climbing too, and has the potential to make further gains. In the past three months, the price for an ounce of silver has increased 28.66%. In May, an ounce of silver cost £11.27, but as of August 16th it has risen to £14.12 per ounce. The past three months has seen global confidence shaken considerably, but closer to home a new prime minister in the UK has increased the chance of a no-deal Brexit significantly, driving the Pound down 7.85% in the same three months.

The US-China trade war has escalated further, with new tariffs being introduced in September and December. Recession fears have also been growing steadily; the UK, Germany, Sweden and Hong Kong all saw their economies shrink in Q2, leaving them one bad quarter away from recession. News this week that yield curves inverted* in both the US and UK has only increased beliefs that recession is looming over the world’s economies.

* the difference in profits yielded between a short term bond, like a two-year deal, and a long-term bond of 10 years or more.

Figures from The Silver Institute show that demand for silver in 2018 was up 3.52% from 2017, with a demand rising from 998.4 to 1033.5 (million ounces). This was partially driven by the investment market – silver coins and bars saw a 20.48% increase in demand in the same period. Figures from 2019 so far are encouraging, with the US Mint for example suspending sales of their silver Eagle coins due to a 50% increase in demand.

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Rory Hall, The Daily Coin and Gospel News Network. Beginning in 1987 Rory has written over 1,400 articles and produced more than 500 videos on topics ranging from the precious metals market, economic and monetary policies, preparedness as well as geopolitical events. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver, Gold Seek, SGTReport, and a great many more. Rory was a producer and daily contributor at SGTReport between 2012 and 2014. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Dr. Warren Coates and Peter Schiff, to name but a few. Don't forget to visit The Daily Coin and Gospel News Network to enjoy some of the best economic, precious metals, geopolitical and preparedness news from around the world.