Categories: Cryptocurrency

Silver reached a maximum after 7 years

The silver it is one of the assets of a receipt that more is given for laying. It is not the custom of the investors focus as much on silver, because the gold and other currencies are there to meet your expectations. Now, however, investors flock to the precious metal forgotten. This after that silver quoted a maximum of 7 years.

It is well known that gold is the favorite of investors at the time of considering an active guard. Because, historically, it has been considered the gold as an asset is more relevant than the silver itself.

However, the benefits that silver provides are forgotten. But, now that the silver traded in a maximum of 7 years, investors appear to have recovered the memory.

Why investors are turning to silver?

Investors tend to flock to gold when the bond returns are flat or negative and the stock markets are choppy. This has certainly been the case during the crisis of the coronavirus, when the price of gold reached record levels.

However, silver has experienced percentage increases even higher in recent weeks. Because the silver traded in a maximum of 7 years.

Investors are flocking to the metal, because the silver traded its maximum of seven years, crying out for the attention of the market. Sources: Reuters

It seems that silver is going for the gold medal, ” he said Mobeen Tahir, associate director of research of the supplier of products listed Wisdom Tree.

The reasons for this effect are directly related to three factors according to Ole Hansen, head of strategy of raw materials Saxo Bankin an interview with CNBC.

The first of these is the injection of more money into the economy by central banks around the world. As part of the attempts to stop the impact of the crisis of the coronavirus and recover the global economy.

The second factor is that it has given rise to that actual yields are heading to negative territory. This is directly related to the cost of opportunity, then invest in these metals indicates a lower opportunity cost.

Finally, the third factor is the weakness of the dollar. This is so because usually the raw materials are traded in dollars, a weaker dollar often translates into a price of the raw materials stronger.

Quote from the silver to the date

At the time of writing, the ounce of Silver spot is trading at$ 27.65, after having touched a few days to a maximum of 7 years up to US$ 29.39.

Silver traded at its highest for seven years, crying out for the attention of investors as well as asset protection. Sources: Yahoo Finance

Since then, it has receded slightly, but it is still in a good position to the ounce. This represents a gain of almost 39% since mid-July, when the rally of precious metals was in full swing.

Hansen said that, because of this monetary easing, had created greater uncertainty about the health of the financial system, with concerns about “a greater accumulated debt that needs to be addressed” what drives the demand for precious metals as an investment safe-haven, he said.

Investors and traders flock to silver as a more practical strategy. However, there is a risk as a result of these leverage of the central banks towards the metal.

Does the performance of the silver will be able to continue this way?

June Lisa Calfee

June is an experienced adviser in Blockchain with a successful track record of working in Public Relations and Growth planning. June has been an active advisor for cryptocurrency enthusiasts and a well known author of Blockchain. June has a passion for learning and is Internationally known for her work in crypto industry.

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