In an interview with iNVEZZ.com, David Jollie, a strategic analyst at Mitsui Global Precious Metals in London, said he thinks that gold’s strength may be what’s pushing silver up at the moment.
It’s difficult to say. Probably the biggest factor in driving the silver price up recently has actually been the relative strength of the gold price. I think in the last year or two, in particular, silver has behaved more like a precious metal than an industrial metal. It’s quite often described as a mix of the two. I think in terms of its uses, in terms of how it’s produced, that’s a very fair way to describe it.
I think what we partly saw was that investor demand slowed down the silver price from its highs in 2011. What we have seen recently is more interest, particularly in gold, and part of that is off the back of some concern there might be higher than expected inflation in the US, and what the Federal Reserve might do about that. I think that’s a large part of it