Here’s why silver could still outshine gold this year, despite weaker fundamentals – by Nicholas Sokic (Financial Post – August 16, 2019)

While gold enjoys all the spotlight, its poor cousin silver has been riding on its coattails and enjoying the safe-haven rally.

Silver has been up more than 11 per cent for the year to US$17.22 per ounce, but is still in gold’s shadow (which is in the midst of a blistering near-18-per-cent jump year to date).

Philip Newman, a founding partner at Metals Focus, a U.K.-based metals consultancy, estimates that silver could hit US$19 by the end of the year and, with central banks easing monetary policy and the U.S. dollar strengthening, prices could go higher.

“Silver is behaving more as a precious metal,” said Newman. “If you go back, over the past few years, it has behaved more as an industrial metal, weighed down by the industrial commodity.”

Canada’s silver production has steadily declined over the years to 353 metric tonnes of production last year from 1,500 metric tonnes in 1990, even as global production has increased, according to World Bank data. Silver’s heavy discount to gold has led investors to diversify their portfolios, driven by demand for jewellery and silverware fabrication products.

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