Explosive Surge of Silver Price
Based on data from LBMA, silver price has increased 44.7 percent in the first half of 2016. The explosive surge of silver reflected many investors’ interest in silver in light of the current global market uncertainties. Interestingly, silver has also outperformed all other precious metals as wealth builders accumulated more silver in the first half of 2016.
Following the record demand seen in 2015, investors’ demand for silver bars has weakened some during this period. This is because in 2015, silver was in a bear market and investors seized the opportunity to accumulate silver bars on the cheap, with the view of potential price appreciation. Since then, the price of silver has galloped and this has somewhat dampened the demand for silver bars.
On the other hand, silver coin sales increased by 29% globally, according to GFMS Thomson Reuters Quarterly Coin Sales Survey. Coin sales enjoy double digits increase across all major regions, such as North America, Asia and Europe. Unlike gold bullion coin sales, which fluctuate according to its prices, silver coin sales have remained resilient since 2010.
2015 has been a disastrous year for the commodity as prices fell across almost all the commodity assets. Silver was no exception as it fell below the support level of US$15 per ounce.
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