For global investors leading up to the summer Olympic games, silver has taken gold.
Halfway into 2016, silver leads a group of commodities that has outperformed U.S. stocks, Treasuries and the U.S. dollar, according to a U.S. Global Investors report.
“Silver demand had a phenomenal 2015, with retail investment and jewelry fabrication both reaching all-time highs,” said Global Investors CEO Frank Holmes USfunds.com. “Led by consumers in the U.S. and India, coin and bar investment soared 24 percent from the previous year, while jewelers gobbled up a record 226.5 million ounces.”
Silver demand for photovoltaic installations climbed 23 percent in 2015, according to the Silver Institute’s World Silver Survey 2016, offsetting continuing losses in photographic applications.
Precious metals stalled in May over concerns about a rise in interest rates and stronger dollar, but have since rallied on Britain’s pending withdrawal from the EU and with government bond yields in freefall.
In the U.S. bond yields have hit an all-time low, where the 10-year Treasury yield fell nearly 38 percent in the first half. As other nation’s pay low to sub-zero yields, precious metals have soared.
Credit Suisse sees gold testing the $1,500 an ounce mark as early as the beginning of 2017, according to the report. Some forecasters see silver hitting $25 to $32 an ounce by New Year’s, according to MarketWatch.
Silver markets are going to continue to be one of the better performers this year, according to a 2016 silver forecast Tuesday at FXEmpire.
“Silver seems to be taking advantage of a world that is very uncertain,” it said, “and even though the US dollar has been strengthening, precious metals in general have been performing very well.”