Silver prices continued their strong climb Tuesday, gaining 14 cents to close at $5.86 an ounce on the New York Commodities Exchange.
Analysts say the pressures that pushed the industrial metal up 34 cents Monday continued to rally prices Tuesday. Institutional buying, deliveries of silver from the Comex reserves and dollar-weary investors helped move the market to new highs for the year.
The market is finally responding to the fundamentals of any commodity market, said Tony Ebersole, head of investor relations for Coeur d’Alene Mines Corp. Silver demand has outstripped supply for quite some time.
“We’re very bullish on silver,” Ebersole said.
The big gains this week mean more calls from stockholders and potential investors to Hecla Mining Co., said Vicki Veltkamp, manager of corporate communications for the Coeur d’Alene-based mining company.
But local mining companies don’t have plans to add to production. Silver must continue to perform well for that to happen.