Silver scores biggest weekly jump in almost 3 years … Silver futures logged their largest weekly climb since 2013 Friday, hitting a nearly 22-month high as the U.S. dollar softened and investors continued to search for safety. -MarketWatch
Usually the mainstream media provides us with a variety of propaganda that distorts the truth.
But there was little in the way of distortion yesterday when gold and silver moved higher convincingly.
Gold moved up hard on Friday, reaching a nearly 22-month high while the US dollar subsided.
The silver SLV moved up some 6% on Friday even as bonds reached new lows.
At a $19.45 closing, silver will have gapped up the most since October 2015.
We recently brought on our first sponsor, silver miner Golden Arrow. You can read more about the company at the end of this article.
It seems metals are on the move. There are several reasons why they’re strengthening.
One, little mentioned, probably has to do with reduced professional metals manipulation.
Deutsche Bank was sued over such manipulations and settled in April.
It is perfectly possible that other professional manipulators are more wary currently.
Bloomberg reported on the settlement this way:
Silver and gold futures traders sued groups of banks in 2014 alleging they rigged prices for the precious metals and their derivatives. Silver traders brought claims against Deutsche Bank, HSBC Holdings Plc, Bank of Nova Scotia and UBS AG. Gold traders additionally sued Barclays Plc and Societe Generale SA.
While Deutsche Bank has settled, the other lawsuits are ongoing. And Deutsche Bank also “agreed to help the plaintiffs pursue similar claims.”
There are other reasons, of course. We’ve discussed them in past stories.
In fact, the 2000 ‘teens are like the 1970s. We have suggested that 1970s-style stagflation would present itself in this decade, and it certainly has.
Some trading professionals expect a pause in gold’s climb before it resumes due to continued market uncertainties.
There have been forecasts that gold could reach $1,350 and possibly $1,400 by the end of the year.
Fawad Razaqzada, market analyst at Forex.com and City Index, pointed out that silver has significantly outperformed gold’s Brexit-related gains.
Silver, unlike gold “has also many industrial uses and so when base metals like copper rally, silver benefits from this source, too,” he said.
That means silver is typically less sensitive to the “risk-on, risk-off” trade that can swing gold in two directions when demand for equities and other commodities ebb and flow.
Gold and silver still have a long way to travel to regain former heights.
And silver has a long way to go to regain its 15-to-1 price-ratio with gold.
As already mentioned, we recently presented a silver mining sponsor. The company is Golden Arrow and the CEO is Joe Grosso. You can see an interview we did with him HERE.
Golden Arrow is partnered with a well-known mining firm Silver Standard in exploiting what could be a major silver discovery in Argentina.
Miners are likely still cheap, relatively speaking, and silver has a long way to travel to reach parity with its historical ratio.
Of course, miners are always speculative, and you’ll need to do your own due diligence.
We’ve seen from yesterday’s buying frenzy that silver and gold are near the top of investors’ purchasing priorities.
Conclusion: Whether you are invested in juniors or not, silver should be considered for at least a modest part of your portfolio along with gold.
If you have questions about Golden Arrow, you can reach representative Shawn Perger here: Shawn: 1-800-901-0058 or 778-686-0135. See the website HERE. Please consult DB’s disclaimer before making investment decisions. This is not an endorsement.