The price of Silver is still a long way off the multi-year high recorded in May, Commerzbank’s commodity analyst Carsten Fritsch notes.

Low Silver price fuels buying interest

“The price of Silver is still a long way off the multi-year high recorded in May. The price increase to $29 per troy ounce merely made up for the losses since the middle of last week. The Gold/Silver ratio therefore remains at a high level of 85. By comparison, it was 73 at the end of May and 75 ounces at the beginning of July.”

“Apparently, the comparatively low Silver price is fueling buying interest among ETF investors. According to Bloomberg data, Silver ETFs have seen strong inflows since mid-July. In the last two and a half weeks, these have totalled around 1,030 tons. Most of the inflows took place on days immediately following sharp price falls, which supports the aforementioned thesis.”