Key Takeaways:
- Silver price rose above US$30 per ounce due to a surge in the gold price, leading to increased demand for silver.
- Futures exchanges and exchange-traded funds are experiencing a drain in silver supply, which could lead to a shortage in the next 12 to 24 months.
- Peter Krauth is not concerned about silver falling below US$30, as he believes it may test US$28 or even US$26 but will stabilize around US$30.
Interview Insights:
Speaking to the Investing News Network, Peter Krauth, editor of Silver Stock Investor, shared his thoughts on the recent surge in silver prices. He explained that the rise in gold prices has ignited demand for silver, causing it to outperform its yellow counterpart. Additionally, there is a significant drain in silver supply from futures exchanges and ETFs, which could lead to a shortage in the next couple of years.
| Date | Silver Price (US$) |
|---|---|
| June 4 | Below US$30 |
| June 5 | Above US$30 (Closing at US$30.05) |
Krauth mentioned that while silver fell below US$30 on June 4, he remains optimistic about its future. He believes the metal may experience some volatility in the coming weeks, with a possible drop to US$28 or even US$26. However, he is confident that silver will stabilize around US$30 and establish a new price floor.
FAQ:
Q: Why did the silver price surpass US$30 per ounce?
A: The surge in the gold price ignited demand for silver, causing it to outperform its yellow counterpart and rise above US$30 per ounce.
Q: What is causing the drain in silver supply from futures exchanges and ETFs?
A: Futures exchanges and exchange-traded funds are tapping into silver supply, leading to a potential shortage in the next 12 to 24 months.
Q: Should investors be concerned about silver falling below US$30?
A: Peter Krauth is not worried about silver dropping below US$30. While the metal may test US$28 or even US$26, he believes it will stabilize around US$30 and establish a new price floor.
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