May 4, 1995 in Nation/World

Strong Demand Fuels Jump In Silver Price

Eric Torbenson Staff Writer
 

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.

Get stories like this in a free daily email

Recent stories in Nation/World

Please keep it civil. Don't post comments that are obscene, defamatory, threatening, off-topic, an infringement of copyright or an invasion of privacy. Read our forum standards and community guidelines.

You must be logged in to post comments. Please log in here or click the comment box below for options.

comments powered by Disqus