Bloomberg: Silver Posts Longest Rally in 45 Years on Rising Haven Demand

Silver posted the longest rally in at least 45 years on demand for an investment alternative amid concerns that the global economy will falter.

Today, reports showed U.S. homebuilder and New York manufacturing trailed estimates by analysts. The Bank of Japan boosted lending programs while sticking with a plan for unprecedented asset purchases to support a recovery. Commodities climbed to the highest in almost five months.

Silver has gained 13 percent this year as demand for coins and jewelry surged. Spot gold has advanced 9.6 percent this year, while the dollar has dropped against a basket of 10 major currencies.

“The premium for gold and silver has increased as people are nervous about U.S. growth,” David Meger, the director of metal trading at Vision Financial Markets in Chicago, said in a telephone interview. “The turmoil in the currency market has also pushed people toward precious metals.”

The silver price climbed for the 13th straight session, the longest rally since at least 1968. Yesterday, the metal reached a nine-week high of $21.9791.

On Feb. 14, silver closed above the 200-day moving for the first time in a year.  “It has broken the downtrend, so there is some technical buying,” Meger said.

“The strength in the gold market and physical buying has helped silver,” Bill O’Neill, a partner at Logic Advisors inUpper Saddle River, New Jersey, said in a telephone interview.

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