, driven by the decline in the US dollar and progress in the COVID-19 vaccine, silver futures approached $20 per ounce today, hitting its high since September 2016. The depreciation of
html $0 has increased the attractiveness of alternative investments of silver . Meanwhile, Moderna Inc. vaccine trials showed positive results, increasing the demand for silver as an industrial metal.Silver is one of the best performing major metals this year, and the dual properties of safe-haven assets and industrial commodities have benefited further in recent weeks.
In recent months, investors have been rushing to buy precious metals, inspired by unconventional measures taken by central banks and governments to boost economic growth while they were together. Many bond markets have lowered yields due to drops in short-term interest rates and a range of bond purchases by the Federal Reserve, reducing the opportunity cost of holding precious metals.
As of June 30, silver holdings in global silver exchange-traded products (ETPs) reached a record high of "925 million ounces, which is approximately equivalent to a 14-month silver supply." According to a recent report by the Silver Institute, ETP grew by 196 million ounces in the first half of 2020, "easily surpassing" the highest annual growth of 149 million ounces in 2009. In terms of industrial demand, silver has extensive industrial applications in the manufacturing of solar panels, medical equipment and consumer electronic products .
In addition to silver, the international price of copper has also hit a new high in two years. Mining workers in Chile, the main ore producer, will launch a strike, and supply risks will increase. Supply may temporarily become tight. In addition, iron ore prices have risen by 38.6% in 2020, exceeding the performance of COMEX gold futures during the same period.
