Silver prices have further to run

Silver prices jumped to a two-year high above $20 an ounce this week. Demand is picking up: Chinese silver imports in the five months to June were 20% up on last year.

This reflects robust industrial demand. Half of silver demand stems from industry, with the fast-growing solar-panels sector accounting for a tenth of that.

Meanwhile, there will be a supply deficit this year, as mining output has fallen. Finally, nervous investors may seek a safe haven while the outcome of the US presidential election is uncertain.

It all suggests that prices have further to run.


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