The price of silver has risen above $20 per oz in a meteoric 74% price jump from the low of $11.64 in struck in March.
Silver futures have touched $20.85, while spot prices hit $20.40 (see chart below). Easy money policies from central banks are generating demand for hard assets that will hold their value in those debased currencies.
It’s not just a dollar phenomenon; silver just reached its highest versus the euro (XAG/EUR) since September 2016. Silver is in effect holding its value while other currencies lose theirs.
There is a supportive backdrop for silver too. It’s prominence in new battery technology and a reduction in base metal mining, which is the principal source of silver, is creating a demand/supply imbalance in itself.
Chart: Silver (weekly candles)
Silver just made its big move above $20 per oz – with a breakout above a 6.5 year-old down-sloping channel- and potentially the beginning of a new long-term uptrend.
Read our next article: Time to SNAP out of it?
