Silver futures are latching on to gold’s rally, climbing above $20/oz to the highest since 2016 on rising haven demand and concerns about supply of the white metal.
Gold and silver have surged this year as the coronavirus pandemic roiled the global economy, spurring sustained demand for havens even as some lockdowns were eased. The outbreak has yet to brought under control in many countries including the US, bolstering the case for holding the metals.
At the same time, there are concerns over production. Of 275 disrupted mining operations globally, the most-impacted were gold and silver mines, according to S&P Global Market Intelligence. In Latin America, where much of the world’s silver is produced, the pandemic has worsened, with Mexico recently overtaking Italy.
Silver futures advanced as much as 1.7% to $20.105/oz on the Comex in New York on Monday, and traded at $20.07 at 8:35 a.m. Most-active prices surged 32% in the three months to June, the biggest quarterly gain since 2010.