Silver prices today were trading up $0.12, or 0.78%, at $15.64. That puts silver prices at a one-month high and 8% above July's six-year low.
"Silver breached technical resistance at $15.30 and looks set to test $16," Swiss refiner and finance group MKS said in an investor note Thursday.
Silver prices this week climbed after a trio of unexpected moves from China's central bank to devalue its closely regulated yuan. China's aim is to boost its slowing economy, which is expected to have trouble reaching a growth rate of 7% this year. Just a few years ago, China was enjoying an annual growth rate in the high double digits.
The surprising action from the People's Bank of China drove investors to buy silver - a safe-haven alternative.
Silver, like gold, is looked at as insurance.
"I have physical silver," Money Morning Defense & Tech Specialist Michael A. Robinson said earlier this year. "I might have bought some at the top, but I don't care what the price goes to; I will not sell that physical silver. It's there for a reason - just like I have insurance on my car, I have insurance in case of a disaster."
Silver is an actual store of value. And at current prices, the cost of insurance is tremendously cheap in relation to the wealth it protects.
Silver prices are now almost back to where they began in 2015. The white metal started the year at $15.71, then hit its high for the year of $18.23 on Jan 23. Since then, silver prices have trended lower as investors await the first interest rate hike since June 2006 from the U.S. Federal Reserve.
The Fed is expected to raise interest rates at some point in 2015. But China's action this week may be reason for the Fed to pause on a rate hike in September. That's bullish for silver prices today.
Silver's affordability continues to attract investors. Many look at any dip in the silver price as a buying opportunity - just check out what this year's low price has done for silver sales...
Silver Prices Today Jumpstart Spending
Demand for U.S. Mint American Silver Eagle coins surged in June to their highest level in 2015. Demand also vaulted above year-ago levels.
June sales of American Silver Eagles soared to 4,840,000. That was more than double the 2,023,500 sold in the previous month. It was also a whopping 79.8% above orders of 2,692,000 from a year ago.
In the first half of 2015, Silver Eagle sales hit 21,786,000. That's higher than annual sales in all but six years going back to the series launch in 1986. The annual Silver Eagle sales record occurred in 2014 at 44,006,000 coins.
Besides low silver prices supporting sales, the U.S. Mint in June lifted Silver Eagle rationing amid heightened demand, allowing bullion distributors buy as many coins as they wanted.
Distributors, in return, had no trouble finding buyers of their silver.
Stay informed on what's going on in the markets by following us on Twitter @moneymorning.
China Targets the Gold Market: The Chinese government has a multi-pronged strategy to strengthen the Asian giant's economy. After years of playing second fiddle in the gold market to the Western economic powers in Europe and the United States, China is making moves toward a more influential role. Here's how China plans to dominate the world gold market...
Related Articles:
- U.S. Mint: Cumulative Sales
- Kitco: Silver Historical Charts