The anticipation of central bank intervention following the UK’s vote to leave the EU has driven Silver prices higher and today, hit a two year high,up 5% to $21 per ounce.
Since the UK’s decision to leave the EU, spot silver prices have rallied 19% as investors seek out safe haven assets, spot gold has only rallied 7.8% in the same period up to $1,351 per ounce, however.
Shares in London’s-listed silver miner Fresnillo, climbed 7% to the highest point since 2012. Over the past 12 months, the FTSE 100 Company has seen a 175% rise in its share price as the uncertainty of the EU Referendum has driven shares higher. Since the beginning of June, Fresnillo is up 83%.
The nature of Silver prices means they can easily alter with interest rate expectations and will often rise when central banks are forecast to ease monetary policy as policy actions could see a decline in value of other assets.
The sharp rise in silver is thought to be behind the recent announcement made by Bank of England governor Mark Carney who last week stated that further monetary policy action such as quantitative easing or a cut in interest rates may be needed to tackle what he described as “economic post-traumatic stress disorder” following the Brexit vote.
At 2:10pm BST Fresnillo PLC (LON: FRES) traded at 1,895.00 +135.00 (7.67%) remaining inside today’s FTSE top 10 risers alongside Rangold Resources (LON: RRS) who traded at 9,180.00 +405.00 (4.62%) 2:14pm BST
04/07/16
