The price of silver is steaming ahead on Monday, as we wait central bank action following the UK’s vote to leave the European Union increase.
The silver spot price is up around 4.7% at $20.60 per ounce at around 5:30 p.m. BST (12:30 p.m. ET), a level not seen since August 2014. Earlier in the day we saw silver overtake the $21 per ounce mark for the first time since July 2014.
If this pattern continues, silver will be in its fifth day of price increases, equivalent to gains of 15% in less than a week’s trading.
One of the key components of silver’s rally is the expectation of easing from the Bank of England. Matching gold, silver generally sees rises when market expectations are for central banks around the world to ease monetary policy. Meaning when policy actions could devalue other assets.
This all started when Mark Carney (Bank of England Governor) suggested that further monetary policy action – in the form of quantitative easing or a cut to interest rates — could be possible, and since then precious metals prices have rallied.
The metal has now gained almost 50% since the beginning of 2016 as part of a broader commodity price rally.