Silver “Overdue for a Big Bound Upwards” if Gold Price Holds

In an article published Tuesday, Mineweb’s Lawrence Williams looks at silver’s recent price action, commenting that “the silver price is now overdue for a big bound upwards provided that gold at least holds its ground.”

As quoted in the market news:

Historically, silver prices have sharply outperformed gold when precious metals prices are rising, and sharply underperformed when they are falling yet this pattern on the upside has just not yet started to appear. But if the recent gold price rise isn’t just a blip then we would expect silver to start to move upwards – and move upwards fast.

After all, as we pointed out in our recent article looking at silver supply and demand — see: Silver in supply deficit but price unmoved so far — there is no big surplus of silver coming to the market although admittedly there have been some strange movements in and out of the big silver ETFs which could affect short-term supplies.

Click here to read the full Mineweb report.