Make Kitco Your Homepage

Move over gold, silver prices above $21 are in the spotlight now – Commerzbank

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - Move over gold, silver is now in the spotlight as prices are rallying more than g% Tuesday, pushing above $21 an ounce to its highest level in six years, according to analysts at Commerzbank.

In a report Tuesday, the analysts noted that silver has seen an impressive rally since hitting an 11-year low in March due to market volatility caused by the COVID-19 pandemic. They noted that prices are up more than 70% from their low. September silver futures last traded at $21.44 an ounce.

Silver has therefore outshone gold significantly, as the latter has risen by 24% as compared with its March low,” the analysts said. “As with gold, silver’s upswing has been driven almost exclusively by robust investment demand.”

The silver market is also on pace to surpass gold’s performance for the year. with its latest rally silver prices are up 26% year-to-date. Meanwhile gold prices are up 21% for the year; August gold futures last traded at $1,841 an ounce, its highest level in nine years.

Analysts at Commerzbank said that speculative interest in the precious metal will continue to drive silver prices.

“According to the CFTC’s statistics, they had already expanded their net long positions to a five-month high in the last reporting week. They are likely to be even higher by now,” the analysts said.

The rally in silver has pushed the gold-silver ratio to its lowest level since March. The ratio on Kitco.com last traded at 87.29 points.

Commerzbank added that unprecedented loose monetary policy around the world will continue to support gold and silver prices.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.