With the U.S. Federal Reserve failing to take monetary action a few weeks ago, silver prices saw an opportunity to deflate, but instead have held steady around $27 an ounce.
Investors' silver holdings are approaching record highs as speculators exit the precious metal and exchange-traded products with silver add to positions. In the last three months, these products' holdings have grown to a $16.2 billion value, reported Bloomberg News.
But they're poised to get even higher.
Analysts have forecast that silver will average $33.02 an ounce in the fourth quarter-an 18% rise from current prices.
Since last week silver has been increasing and closed up 0.35% to $28.00 on Friday.
So why are investors bullish on silver? There are a few reasons.