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Here’s What’s Behind the ‘Perfect Storm’ Sending Silver Prices Surging | The Mesh Report

Here’s What’s Behind the ‘Perfect Storm’ Sending Silver Prices Surging

The Gold Enthusiast July 22, 2020 Comments Off on Here’s What’s Behind the ‘Perfect Storm’ Sending Silver Prices Surging

It is hard to find an asset on more of a roll than silver.

On Tuesday, silver for September delivery SI00, 3.89% surged nearly 7%, the highest settlement since March 2014, and 83% above its March lows. Silver was up in the early hours of Wednesday as well.

“It seems the precious metal has been caught up in the perfect storm,” says Jeroen Blokland, senior portfolio manager at Robeco Asset Management.

Much of what’s driving silver also is driving gold — aggressive monetary policy financing of fiscal spending, which limits the ability of bond yields to rise. That is sending inflation-adjusted, or real, yields lower, which tends to boost precious metals.

In addition, silver is still cheap relative to gold GC00, 0.36% by historical measures.

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