Silver Posts Longest Rally in 45 Years on Rising Haven Demand

Silver posted the longest rally in at least 45 years on demand for an investment alternative amid concerns that the global economy will falter.

Silver has gained 13 percent this year as demand for coins and jewelry surged. 

Holdings in exchanged-traded products backed by the metal climbed last year as the spot price tumbled 36 percent, the most since 1981, amid a U.S. equity rally to a record.

Spot gold has advanced 9.6 percent this year, while the dollar has dropped against a basket of 10 major currencies.

“The premium for gold and silver has increased as people are nervous about U.S. growth. 

 “The turmoil in the currency market has also pushed people toward precious metals.” 

Silver for immediate delivery rose 1.1 percent to settle at $21.9348 an ounce at 5 p.m. New York time. The price climbed for the 13th straight session, the longest rally since at least 1968. Yesterday, the metal reached a nine-week high of $21.9791.

 On Feb. 14, silver closed above the 200-day moving for the first time in a year.

“It has broken the downtrend, so there is some technical buying.

Silver futures for March delivery rose 2.2 percent to settle at $21.898 on the Comex in New York. Trading more than doubled versus the average in the past 100 days, data compiled by Bloomberg shows.

In the week ended Feb. 11, hedge funds turned bullish on silver with the net-long positions at 7,675 futures and options contracts, compared with 353 contracts in bearish wagers a week earlier, government data showed on Feb. 14.