newgamewemix| The next commodity to explode? Silver breaks through US$30 per ounce, setting a new high in more than ten years

Source: Wall Street News

Silver prices broke the important $30-an ounce barrier on Friday for the first time in more than a decade. Strong demand in finance and industrynewgamewemixAgainst the background of, silver has risen more rapidly than gold, and the buying momentum has increased. Silver has risen nearly 30% this year, surpassing gold to become one of the best-performing major commodities during the year.

At 23:07 pm Beijing time on Friday, spot silver rose 3.5%.newgamewemix.97% to $30.7498 an ounce, the highest since February 2013, and gold rose 1.69% to $2,417.02 an ounce. Since then, silver's increase has further expanded. Spot silver rose by 4.5% within the day to US$30.9/ounce;COMEX silver futures rose by 4.5% within the day to US$31.23/ounce.

Shanghai gold closed up 1.64% in night trading, and Shanghai silver closed up 6.02% at US$8061/kg.

Although the media headlines mainly focus on gold, which has set historical records many times this year, it is actually silver that is rising faster and faster. After experiencing a relatively larger rally, silver is still cheap compared to gold. It currently takes approximately 80 ounces of silver to buy 1 ounce of gold, compared with the average gold to silver ratio of 68 over a 20-year period.

Gold and silver, the two precious metals, fluctuate largely in sync because both have similar macro and monetary characteristics. As central bank gold purchases around the world surge, retail investor interest rises, and expectations of interest rates rise in the United States, gold prices hit a record high, and silver also rose.

It should be noted that although investors have little interest in silver ETFs, sales of physical gold have rebounded. Some industry insiders pointed out that the current situation is that even customers who are interested in buying gold are starting to say, OK, maybe I will buy silver first and then wait for the gold and silver ratio to return to balance again.

The silver market is much smaller than gold, and the trading volume of silver futures contracts is larger relative to its annual physical supply. This is similar to cocoa, which performed extremely strongly earlier this year. It is susceptible to speculation and market sentiment, resulting in sharp price fluctuations. Looking back from the late 1970s to the early 1980s, there was a well-known Hunter brothers 'silver short run.

Faced with the rising trend of silver, analysts are cautious:

Risk warnings and exemption clauses

The market is risky and investment needs to be cautious. This article does not constitute personal investment advice, nor does it take into account the specific investment goals, financial conditions or needs of individual users. Users should consider whether any opinions, opinions or conclusions contained in this article are consistent with their specific circumstances. If you invest accordingly, you will be responsible.