Investors are close to making the biggest bet ever on silver even though there are concerns as to whether the rally in precious metals will last.
Prices on silver are up 25 percent in 2016, tracking a similar rally in gold on speculation the Federal Reserve will hold off on raising interest rates.
Total holdings are worth about $11 billion, according to Bloomberg. That’s just 15 percent of the amount invested in bullion funds rising within 0.6 percent of a record reached in 2014.
Silver futures for July delivery moved 1.7 percent to settle at $17.268 an ounce at 1:40 p.m. on the Comex in New York. The 25 percent gain this year overtakes gold’s 20 percent rally.
We’ve seen an increased interest coming back into the precious metals space. A lot of people are looking at silver as something that could potentially benefit, not just because of the increased interest in precious metals, but also because it has such a strong industrial demand.