Gold price fluctuated at a high level, and silver soared.
Recently, the precious metals market has staged a remarkable market.
On June 5, the price of spot silver soared sharply,Once the increase exceeded 4.5%, breaking through the key $36/ounce integer mark, reaching its highest level since February 2012. Although the price fell at the close, it closed at $35.63 per ounce.
On June 6, spot silver was reported at $36.18/oz,Intraday increase of 1.49%;COMEX silver hit a maximum of 36.40 USD/oz, an increase of 1.61% intraday, showing the market's strong pursuit of silver.
Since this year, #A3A3A3;">The cumulative increase in spot silver has reached about 24%. has shown a strong upward momentum. Is the time to invest in silver? What will happen in the future?
Silver price increases more than gold
market data shows that the spot gold price has risen by about 0.6% this week, while the cumulative increase of spot silver has exceeded 9%., it stood at the $35/ounce mark, and it even broke through the $36/ounce mark for the first time since February 2012.
Analysts said that this differentiation is mainly driven by the logic of gold-silver ratio repair, the unique attributes of silver and market sentiment resonance. In recent times, the gold-silver price ratio has risen to 1 to 100, which is equivalent to 1 ounce of gold that can be exchanged for 100 ounces of silver, which is far higher than the historical average. This extreme ratio implies that either silver is seriously undervalued or gold is seriously overvalued. In addition, from the perspective of silver volatility, since the market size of silver is only one-tenth of gold, it means that a considerable capital inflow often triggers greater fluctuations in the price of silver.
Policy risk pushes up silver prices
It is no accident that the sharp rise in silver prices is.
Qu Rui, deputy director of the Research and Development Department of Oriental Jincheng, pointed out in an interview with China News Service's National Knowledge Express that the sharp rise in silver prices may be due to the policy change of Trump's announcement that the import tariffs on steel and aluminum will be increased from 25% to 50%. This move has sparked widespread concerns and speculation in the market, and the market expects the U.S. government may take similar tariff measures against other major metals.
Qu Rui said that this uncertainty has caused long positions in silver futures to rise rapidly, and investors have poured into the silver futures market in an attempt to gain profits from possible price fluctuations. At the same time, the implicit volatility of call options in the options market also soared, further reflecting the strong market expectations for rising silver prices.
The market generally believes that with the adjustment of tariff policies, the global trade pattern is facing reshaping, and the supply chain stability of the metal market has been impacted. In order to avoid possible risks, investors transfer funds to a relatively stable and risk-averse precious metal market. As an important member of it, silver naturally became the direction of capital inflow. This market behavior caused by changes in macro policies has directly driven the sharp rise in silver prices in the short term.
Source: China News Service, National Express, Securities Times
Editor: Ma Xueyan
