Silver Prices Soar 20% as US Treasury Bid Boosts Precious Metals

Silver prices surged by about 20% in August to reach $70 an ounce on August 21, driven by the US Treasury's decision to double long-bond buybacks. This powerful bid for precious metals has pushed silver beyond several banks' full-year average forecasts.

The rapid advance has also amplified gains in silver equities, with major miners leading the way. Hecla Mining led the group with a 47% August gain, more than twice the metal's advance, followed closely by Wheaton Precious Metals and Coeur Mining.

Bullion already at levels that recently looked aggressive has left investors wondering whether miners can sustain their outperformance and how much of Wall Street's bullish outlook has already been priced in. Major bank forecasts remain widely dispersed, with targets ranging from $67 to $118 an ounce for year-end prices.