Prices of silver are up by almost 7% this week marking their best weekly performance since January. It is expected to increase almost 30% year, making it the best performing in the precious metal industry this year.
The silver-gold ratio or the quantity of silver ounces required to purchase an ounce of gold, slumped to 50 last week, the lowest since October.
Meanwhile, platinum group metals relaxed after continuous 5-month highs last week on supply worries regarding a strike in the top manufacturer in South Africa.
To aid in strengthening the physical silver market, Sprott looks to the bullion supply source. He requested the mining firms to think about holding 25 percent of their 2011 cash reserves instead in physical silver.
So after several months, it is interesting to know how Norton Scientific Journal reacted, knowing that they are well-informed of the history and role of precious metals as good money. But many executives of mining firms are more informed about things like core samples, extraction rates and ore grades than in economics and financial aspects of the business.
In fact, there have been telltale signs of several popular silver miners that have different considerations on their products and on how they release them to the market.
While 3 miners could not be considered as a representative of a wholesale change in the attitude across silver mining sector, this development is certainly welcome news to investors of silver. They have to wait and see first if this progress is indeed a beginning of a trend. Someone is obviously __ on supporting the physical silver market overcome its larger paper counterpart.
These basics in the market of physical silver have been evident for some time now. They are waiting to see if some trend of more management and selling of cash and bullion reserves by the miners accumulate, and if a more pure process of price exploration starts to happen in the silver market this year.
Both silver and gold have increased last week, with silver rising considerably in time with the report from the Labor Department’s weekly jobless claims at their lowest in years and business confidence in Germany also increased this month.
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