While gold takes the headlines, silver has experienced a surge of its own this summer, and has actually had a stronger season than its yellow counterpart. While investors often flock to gold in times of uncertainty – and the crisis in Syria coupled with tapering fears has created just such a scenario – silver gains on the strength of the global economy. With strong trade numbers out of China and an overall recovery from the financial crisis occurring worldwide, silver is rebounding nicely.
Silver is also rising on increased demand for silver jewelry out of India. Sudheesh Nambiath, an analyst for Thomas Reuters GFMS in Mumbai, said even in spite of India’s recent economic woes he expects demand to increase 20 percent in the country.
The precious metal experienced a major surge from Aug 12-16, with silver slated for Sept. delivery rising 12 percent. That marked silver’s largest weekly gain since Oct. 2011.
Silver for Dec. delivery is up 3.73 percent on the day to hit $24.39 a troy ounce. In kind, silver ETFs have had a nice day and experienced significant gains.
ETFS Physical Silver Shares ($SIVR) was up 3.94 percent to hit $24.06 a share. The popular iShares Silver Trust ($SLV) was up 4.07 percent to hit $23.52 a share. Proshares Ultra Silver (AGQ) was the big winner on the day, rising 8.05 percent to hit $25.77 a share.