Silver prices in US today: Holding above $36 per ounce, may go higher soon
Silver prices in US: Spot silver was last seen at $36.40 an ounce, up more than 1% for the day. Spot gold was at $3,344.28 an ounce, up 0.24%.
Silver prices are holding strong above $36 an ounce while gold stays above $3,300. One portfolio manager says both metals could still go higher. Ryan McIntyre, Senior Managing Partner at Sprott, said he still believes in gold’s strength but is paying more attention to silver right now, as per a Kitco News report.
McIntyre’s view comes as the gold-to-silver ratio has dropped below 92. In April, it was over 100, the highest in years. Spot silver was last seen at $36.40 an ounce, up more than 1% for the day. Spot gold was at $3,344.28 an ounce, up 0.24%.
Lower fears about a worldwide recession and easing trade tensions are helping silver demand for industrial use. Gold prices are steadier right now. McIntyre said he thinks both silver and gold will move up, as more people look for ways to protect their money.
He said silver still has room to catch up to gold. Even though central banks do not hold silver as a reserve asset, it is still popular with everyday investors.
'Silver is an attractive value play'
“Gold remains the ultimate global currency,” he said. “But right now, silver is an attractive value play. For me, gold will always have a permanent position in a portfolio. Silver comes in on a tactical basis, on a value proposition basis.”
Many investors watch silver’s industrial use, which makes up 60% of the market. That part of the market still shows a big supply gap. But McIntyre said silver is also important as a hard asset.
He said that rising government debt is creating more risk around the world. More people are starting to avoid government bonds and turn to assets like gold and silver.
“Governments continue to run huge deficits relative to GDP, and people are starting to realize that the math doesn't add up,” McIntyre said. “The financial situation should scare people, and when that happens, we’ll see more capital move out of equities and into hard assets.”
“With gold above $3,000 an ounce, investors will start to look for value in silver. I expect that gold will continue to rally, and it will drag silver higher regardless of industrial demand impacted by economic activity,” he added.
