Silver Surges 12% In 5 Trading Days – Record Silver Coin And High ETF Demand
Tuesday, 13 August 2013
Silver has consolidated on it’s sharp 4.3% rise yesterday and has risen another 1.2% in European trading this morning.
Silver climbed for a fifth day yesterday and has now surged 12% in 5 trading days. It has risen from a low of $19.17/oz last Wednesday to $21.66/oz in recent trading.
Silver futures have declined 28.6% this year in New York, the biggest loss among the 24 commodities tracked by the Standard & Poor’s GSCI Spot Index but the smart money is continuing to accumulate on the dip.
Recent resistance at $20/oz and $20.50/oz has been overcome and silver is set to test resistance at $22/oz. Above $22/oz, the next level of resistance is at $24/oz and $25/oz.
An ounce of gold bought 61.5 ounces of silver in London today and the gold silver ratio has fallen from over 67 at the start of August.
Since 2003, we have said that the gold silver ratio would in time revert to its long term, historical average below 20 to 1 (see charts below). In a note today, UBS say that the gold silver ratio should drop toward 50 in the next couple of years as silver continues to outperform gold.