Silver holds its value well in debased currencies — LCG
(Kitco News) Silver's outstanding performance this week is led by investor interest as well as an industrial component, according to London Capital Group (LCG). “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 … Easy money policies from central banks are generating demand for hard assets that will hold their value in debased currencies,” writes LCG head of research Jasper Lawler. “It’s not just a dollar phenomenon; silver just reached its highest versus the euro (XAG/EUR) since September 2016.” Silver can hold its value while currencies lose theirs, which is generating additional investor interest in the metal Jasper highlights. On top of that, there is an industrial component that is working in favor of higher prices. “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,” Lawler says.