This is the second post in our four-part series looking at how the precious metals produced by the Australian mining industry have performed over the year to date, from a finance and commodity perspective – using June as a snapshot. Our first post in the series examined the extraordinary surge in the gold price during June. So with silver generally outperforming gold in a strong bull market, what did silver do?
SILVER SETS THE SCENE FOR A LONGER-LASTING TREND IN GOLD
In June, silver out-performed May for absolute strength, but not for the overall range, with a 17 percent rally for the month.
In Australian dollar terms, the price rallied 13.60 percent, from $22.11 to close the month at $25.12, very close to the high of $25.25., right on the monthly cloud base, which it has since penetrated.
What is notable is that silver generally outperforms gold when gold is in a strong bull market, and vice-versa, so the silver price performance could indicate a longer-lasting uptrend in gold, but who is confident enough to make iron-clad commodity price predictions in the current uncertain climate?
The Volume-weighted-average price through June was US$17.57. The month started by continuing the liquidation that began in May, but between June 7 and June 21. almost 98 million Tozs of metal sold off. The week of the ‘Brexit’ referendum actually saw a slight outflow.
There was also reports of significant buying from China towards the end of the month and Global ETFs saw 4.355 million Tozs of buying throughout June.