Silver acted “more like an industrial metal” in yesterday’s trade, going up 2 percent — perhaps a sign that the commodity is changing.

According to Dow Jones Newswire reporting, while gold slipped yesterday the price of silver futures went up by 31.1 cents to $15.68 per ounce — which is its highest finish for a most-active contract since February.

According to analysts, traders were more concerned with silver’s application as an industrial metal than a precious one when they decided to trade. 

Chintan Karnani, chief market analyst at Insignia Consultants, made the reference to silver behaving “more like an industrial metal” on Tuesday, after it was buoyed by hopes of a US-China trade deal and better-than-expected US retail sales numbers 

Economic data out on Tuesday indicated that US retail sales rose 0.4 percent in June.

Given the metal moved on signals which would normally spur industrial metals, it’s a sign the market is starting to take silver’s industrial applications into account.

Silver is the best thermal and electrical conductor of all the metals, and it’s also anti-microbial, which makes it useful in medicine, electrical applications, and consumer products.

Several commentators have started to call a rise for silver, which has seen its price languish this year.

For example, Hecht Commodity Report creator Andrew Hecht recently noted that now gold had pushed through $1400/oz, the market’s attention may start turning toward silver.

“There is still room for [it] to underperform but I think it’s only a matter of time before investor sentiment shifts,” he said.

“At some point people are going to wake up to the value proposition,” he said. “Investment demand in silver is driven by sentiment and that will come back with people least expect it.”


This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.