The price of silver edged tantalizingly close to $6 an ounce Wednesday, nearing a barrier it hasn’t crossed this decade.
An ounce of silver closed at $5.96 an ounce on the New York Comex spot market. Analysts say the reason for the continued strength of the market this week has been the fact the Comex market has been delivering silver for its May contracts.
“People are actually using the metal, and they’re using a lot of it,” said Jeffrey Christian of the CPM Group Ltd. in New York City. “That’s what’s principally been behind this market as of late.”
Don’t look for the big jumps to continue, Chrisitan said. He and his analysts expect the white metal to drop back down in price as soon as next week. Prices could fall as low as $4.90 an ounce in a “worst-case scenario.”
However, the long-term market suggests $6 an ounce is not unlikely during the summer and the rest of the year, Christian said.
Local mining stocks that have benefitted from the market’s rally were either unchanged or down slightly on Wednesday.