Barron's: Silver Is Soaring. Why the Rally Has Legs
Article by Jack Denton in Barron's
While it was shaping up to be a shaky day for the stock market, over in the world of silver the news was a lot shinier.
Continuous-contract futures tracking silver prices jumped 1.5% on Monday and were trading around $58 an ounce, an all-time high based on available data back to 1972.
Silver prices have rallied for five straight days, with this being the best five-day stretch since August 2020. Prices have almost doubled so far this year in what would be the best performance since 1979, when prices more than quintupled amid the historic attempt by the Hunt brothers to corner the silver market.
“Where it goes next is anyone’s guess,” David Morrison, an analyst at broker Trade Nation, wrote in a Monday note, adding that outsize gains on Friday came amid poor liquidity in markets amid technical issues impacting silver futures traded through CME Group.
Michael Brown, a strategist at broker Pepperstone, suggested that the rally has legs, however—especially since the recent run-up could attract more ......