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FxWirePro: Cheap silver likely to attract further investor demand
While the price of gold has been struggling lately in the face of a stronger U.S. dollar, silver has been outperforming since the second week of July. Since bottoming around $15 per troy ounce area in the first week of July, silver has returned almost 5 percent as the white metal trade around $15.72 per troy ounce.
The cheap price of silver compared to gold is fueling the latest rally in silver and likely to attract further demands. In June 2019, one troy ounce of gold bought more than 92 ounces of silver, the highest number since 1991, when one troy ounce of gold bought 99 troy ounces of Silver.
As precious metal remains in an upward trajectory, we expect the cheap price of silver compared to other precious metal especially gold likely to attract further investor demand, looking to hedge portfolios against volatilities in stocks and bond market.
Silver is currently trading at $16.1 per troy ounce.