Weak industrial demand is holding back silver’s potential price performance against an upbeat gold price, seemingly treading water when gold enjoys renewed interest as a safe haven for investors in the uncertain global economic environment.
Bank of Montreal (BMO) Capital Markets research analyst for commodities Jessica Fung on Thursday explained that the silver price typically moved in close relation to the gold price, meaning that when gold moved up, silver should be moving up by twice as much. It was because of this leverage on gold why some call it ‘poor man’s gold’.
