Unlike Q2, which was relatively slow for silver, Q3 brought major moves from gold’s sister metal, spurred on in part by two US Federal Reserve interest rate cuts.
The precious metal, which was also driven by gold’s gains, started the three month period selling for US$15.11 an ounce and spent much of July trending higher.
The August story was similar, with silver hitting US$18.34 by the end of the month. September offered a little more volatility for the currency metal, which started the month at US$18.43 and subsequently climbed to US$19.23 before sliding down to US$17.62.
The third quarter of 2019 was eventful for silver, which rallied to highs unseen since 2016.
The white metal, which is impacted by many of the same issues that affect gold, responded well to the uncertainty brought on by the ongoing trade dispute between China and the US, as well as tensions between Tehran and Washington.
At this year’s Sprott Natural Resource Symposium, the Investing News Network (INN) spoke with EB Tucker, director at Metalla Royalty & Streaming (TSXV:MTA,OTCQX:MTAFF), about the trajectory of the precious metals. He sees the current period as the calm before the storm.
“It’s happening right now,” he said. “(Gold is) going to hit US$1,500 (per ounce), silver’s going to hit US$20 and there’s not going to be a break before that happens.”