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Alert for Catching Silver’s Last Train
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Alert for Catching Silver’s Last Train
Prices of precious metals have been rising on the weak DXY since March and even soared in July, wherein silver and gold crowned the best performers with the biggest monthly gains in the decade. Prices of spot gold increased by 11.25% in July while spot silver even picked up 36.40%. Although palladium and platinum swelled 7.95% and 9.22% respectively, it is notable that platinum spot prices have been remaining stable since the beginning of this year, rather than seeing aggressive growth as other three precious metals.To get more news about WikiFX, you can visit wikifx news official website.
Silver was the major precious metal in China before Qing dynasty, thus there have emerged silver-oriented institutions (banks today), the circulation of silver as currency, silver tickets (bank notes today) and so on. It is after the U.K. took the lead to adopt the gold standard between 1816 and 1821 that the status of silver was replaced by gold globally.
Precious metals have undergone profound adjustments over the past decade. No one had ever expected that platinum, the most precious metal all the time, would be much cheaper than palladium and gold. As of the time of writing, platinum spot prices hover around $966 while gold settles at $2,040, palladium stands at $2,180 and silver finds itself in $26.95. By this account, palladium has ousted platinum from the most precious metal.
Silver prices have been weak since 1980, lagging behind the market of precious metals. The major reason lies in the slump in industrial demands. Unlike gold, which shows significant power in inflation hedge and risk aversion, silver, palladium and platinum are mainly used for industrial purposes. While central banks' forex reserves and gold reserves sound familiar, silver reserves or platinum reserves are never heard
Gold defeats silver in terms of the overall performance over the past ten to fifty years. The outstanding performance of silver in recent months, however, is because the silver ETF(exchange traded fund) was listed and even HKEX(Hong Kong Exchanges and Clearing Limited) has promoted silver futures. The rare prosperity in silver was fueled by people deliberately. Thus, there is no substantial evidence for this kind of boom. On the contrary, the uptrend in palladium and platinum is relatively rational without any foreign intervention. Gold is possible to fresh a new high based on both facts and analysis. Instead, silver prices is spiking in a farfetched way for me. In this regard, it should be alert whether you are on silvers free ride or last train.