U.S. Federal Reserve Chairman Ben Bernanke on Friday hinted at further central bank action and silver prices jumped more than 3%. They've continued climbing this week to over $32 an ounce.
Speaking at the annual Jackson Hole, WY economic symposium, Bernanke expressed concern about the U.S. labor market stagnation and said yes, he is open to more quantitative easing to assist the economic recovery.
Details weren't included but it didn't matter: Bernanke said the magic words.
Silver has jumped on the bull train thanks to inflation concerns and talks of quantitative easing by central banks. Buyers increased in volume after the Aug. 22 release of Federal Reserve minutes, extending a rally that had been kicked off by signs of European solidarity.
It's not just U.S. news that's keeping the run going. German officials, including Chancellor Angela Merkel, are starting to sing a different tune for the European Central Bank's (ECB) stimulus activities. This may help reduce borrowing costs for debt-ridden Eurozone nations.
All these signs are reasons to load up on metals before prices take off higher.
"From now on, this is a dip-buying market," David Govett, head of precious metals at the brokerage Marex Spectron, told The Financial Times. "Yes, there will be setbacks along the way, but fundamentally the market is now in bull mode."