On Monday futures on silver closed at their 31-year high as demand of investors for harbor assets grew after Standard & Poor’s published a negative forecast regarding the US rating.
The prices for silver rose up to USD 42.940 (a high for 31 years) after S&P lowered its forecast over the US rating from stable down to negative. Investors’ demand for currency alternative and an instrument of hedging against economic uncertainty have supported silver futures.
The quotations of April silver futures on COMEX grew by 0.9% (39.1 cent) by the end of trades and thus constituted USD 42.957 per ounce. The intraday high was much lower than that registered on January 18, 1980 – 50.360.
May futures on silver trading more actively, grew by 38.5 cent (by 0.9%) up to a record high of USD 42.956. Yet it is less than the intraday high of USD 43.560 per ounce.
Market participants say that the prices for precious metals are likely to continue increasing amid resumed demand for harbor assets and intensifying concerns over the European sovereign debt.
The market is more and more ruffled by talks about Greece not likely to fulfill its debt settling obligations regardless of the assistance rendered by the EU and IMF. These concerns have exacerbated due to rumours according to which no supplementary aid will be provided which is to make investors buy harbor assets amid increasing uncertainty.