The Price of Silver is On a Big Tear in 2017

Cassie Bastien

2/16/2017 9:56:32 AM

Daily Gold & Silver Market Report – 02/16/2017

The Gold price has received a lot of buzz so far in 2017; however, Coin World reporter Joe O’Donnell said since Christmas, “the price of Silver has enjoyed an even steeper climb.” An article by Lombardi Letter said, “Precious Metal investors have a special affinity for Silver, and some circles dub Silver as ‘the poor man’s Gold.’ The most intriguing factor surrounding this metal is its correlation to the Gold price. These two metals are married at the hip, but with one caveat: the Silver price tends to dramatically outperform Gold when a rally in the Precious Metals space ensues. If Gold is set to rise, then the Silver price will undoubtedly follow, with much more vigor.” With that being said, Google Finance says that from Dec. 22 to Feb. 15, the Dow Jones industrial average has risen with Gold and Silver, from 19,918 to 20,575.

Gold Smells a Rat in this ‘Animal Spirits’ Markets

President Donald Trump’s hint of a “massive” tax plan in the “not-too-distant future” helped the stock market see its best run in a quarter century. However, some say the gains are about more than fiscal stimulus promises. IG’s Chris Weston said, “The U.S. is seeing signs of 'animal spirits',’” noting upbeat U.S. economic data, which he believes is evidence recent stock gains are being pushed by something other than just a presidential promise. MarketWatch reporter Barbara Kollmeyer said, “Gold would normally move in the opposite direction of stocks, but right now it’s up about 7.3 percent for the year so far, while the S&P 500 is up around 5 percent.” The Big Breakout blog stated that “After the [U.S. Presidential] election and 2016 longs were unwound, Gold has come back to a fair value and Silver is leading the charge. This is very positive price action...”

World Stocks Ride to Record High

Reuters reporter Marc Jones said, “World stocks hit an all-time high on Thursday as the latest round of robust global data matched hopes that major economies like the United States will soon be serving up large helpings of fiscal stimulus.” ABN Amro's Chief Investment Officer Didier Duret said, “There is a momentum, we don't know when it will stop, but at the moment it is strong. Investors are rather underinvested anyway and there is lots of cash so equities are the asset class of default in this environment.” Another reason for the buoyant mood, according to Jones, “has been that, unlike in recent years, the prospect of U.S. interest rate rises – which tend to set the bar for global borrowing costs – does not seem to be spooking markets. The dollar is still down for the year despite a strong run over the last couple of weeks, while Treasury yields, have barely risen, which has helped propel emerging market bonds, stocks and many currencies higher.” Despite the boost from the new record high in global stocks, mildly weaker Precious Metal prices meant European shares couldn't quite hold their ground either, Jones said.

At 10:56 A.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,244.20 Up $9.80
• Silver, $18.20 Up $0.15
• Platinum, $1,018.30 Up $9.40
• Palladium, $796.30 Up $8.10

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