Silver Prices Soar 20% in August Amid Treasury Buybacks Decision
Silver prices surged about 20% in August to touch $70 an ounce on Friday as investors reacted to the US Treasury's decision to double long-bond buybacks. The rapid advance has pushed silver beyond several banks' full-year average forecasts while leaving it below many of their more bullish year-end targets.
The rally highlights silver's leverage to shifts in monetary conditions and investor demand. With bullion already at levels that recently looked aggressive, attention is turning to whether miners can sustain their outperformance and how much of Wall Street's bullish outlook has already been priced in.
Miners such as Hecla Mining (NYSE: HL), the largest US silver producer, led the group with a 47% August gain. Other notable performers include Wheaton Precious Metals (TSX, NYSE: WPM) and Coeur Mining (NYSE: CDE).