So here is the big question surrounding the silver market: Will silver prices continue to strengthen as the year progresses?
Silver started the year as “the most beat-up of the precious metals,” admits Mike McGlone, the New York City–based director of research U.S. for London-based ETF Securities.
In 2014, silver was the worst performer in the precious metals group, which includes gold, platinum and palladium. It hit a high of $21.50 an ounce in London in early July, but by early November, silver had declined 29 percent to $15.28 an ounce, “which is near our estimate of the marginal cost of production,” McGlone notes.
Simultaneously, gold lost “just” 15 percent because it was “supported in part” by “heightened geopolitical risks,” explains Robin Bhar, the head of metals research at Societe Generale Cross Asset Research in Canterbury, U.K.
And during that downswing,