Silver price makes minimal gain from long term low

The price of silver has edged up slightly from the 14-month low recorded on Friday (September 12th).

Closing on Monday (September 15th), the price of silver for immediate delivery grew to $18.64 (£11.51) from the $18.63 recorded on Friday. The end of last week had been a turbulent time for the commodity as it dropped to $18.46, the lowest level since June 2013. However, it made a slight recovery over the weekend and opened on Monday at $18.69 on COMEX before plateauing later in the day.

InVezz reports that silver has gone against expectations so far this year with increased calls for a price hike in the commodity to capitalise on strong industrial buying and flat mining supply. China, traditionally the biggest consumer of silver across the globe, has seen a drop in inventories and has led to an increase in demand.

Users have been buying heavily into silver with data from BullionVault, reported by the news provider, showing that 2.5 tonnes of the precious metal had been added to the holding in September alone. This represented that fastest growth since May when the sector managed to achieve a 16-month record.

Despite this hike in demand there does not seem to have been much change when it comes to the price of silver. As investors purchase more silver there has only been a minimal increase in the price from the 14-month low recorded just a matter of days ago.

There was a similar story in gold prices. Last week represented the poorest performance of the commodity for months with the bullion price being affected by a rising dollar and much stronger US economic data. Friday saw the price of gold drop $11 to $1,229 and it closed on an eight month low.

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