Rus News Journal

Silver competes with gold

precious metals

Yesterday the prices for silver have reached $7,72 for ounce - the maximum mark for last six years (since precious metal bought up Warren Baffet). On silver shows the raised demand the industry of China, intensity growth in the Near East too conducts to a metal rise in price. Besides, investors try to reduce backlog of a rise in prices for silver from a rise in prices for the gold formed by the end of last year.
yesterday in the international market of the price for silver have reached record values since February, 1998 - $7,72 for ounce. Actually continuous growth of quotations of silver proceeds five months, in this time the prices have grown already on 50 %. Experts connect a record rise in price of silver both with fundamental, and with the technical reasons. Silver is used in the jeweller industry, and also by manufacture of photographic materials and electronic devices. Now there is a great demand on all resources from the industry of such growing regions, as, for example, China - analyst TheBullionDesk marks. com Ross Norman. Besides, yesterday intensity growth in the Near East became an essential push for a silver rise in price.
the intermediate term potential of a rise in prices for silver is provided with technical factors. The prices for silver correlate with the prices for gold which is considered the most safe active in geopolitical shocks. After growth of the price for gold (+1,5 %) the prices and for silver (+2,4 %) were raised. For last three years of the price for gold have grown more than on 50 %. Meanwhile the prices for silver for the same period have risen all on 30 %, and only in the last quarter of last year its prompt rise in price has begun. the fundamental reasons it is, of course, good, but buyers now are guided by more simple reasons. Funds transfer money in those sectors of the market where the prices have yet strongly grown - economist Societe Generale Stephen Brigs has declared. Comparison of the relation of the prices for gold to the prices for silver during the different periods is indicative also. In the beginning of year the gold ounce cost as much, how many 70 ounces of silver. Now for gold ounce give only 55,8 ounces of silver, that is the relation of the prices for these two metals has reached those marks on which was three years ago.
At the same time the potential for faster rise in prices for silver concerning a rise in prices for gold still remains. Six years ago, when the prices for silver reached $7,9 for ounce, the parity of the prices for two metals made 42,8. However, then in the market there were not ordinary events: the legendary billionaire Warren Baffet bought up 130 million ounces of silver (third of annual world production of precious metal of that time) in hope of the further growth of its cost. It is considered that ingots of this metal are stored till now in Europe. But silver steals up to former values just now. Thus, according to analysts, purchase of Baffeta shortly will justify itself. achievement of the maximum mark since purchase of Baffeta opens to the prices road up to $8 for ounce - it is told in forecasts Standard Bank. It will be already 16 - a summer maximum in the silver market.
ALEXEY - BAJBAKOV