Silver made impressive gains last week to close at its highest level since early April, when it was soaring higher towards its record level.
During the past month, the white metal rose from $34 to around $42, a 19% gain, while gold only increased by around 11%.
Safe haven demand helped underpin the price of silver as the global economy continues to tumble, with the European sovereign debt crisis and downbeat data from the U.S. sparking the general risk-off sentiment.
The moves by the Swiss National Bank and the Bank of Japan to weaken their currencies means the Swiss Franc and the Japanese Yen are no longer seen as safe havens against a falling US dollar or Euro. Consequently, precious metals such as silver and gold are seen as counters to currencies which will likely keep the precious metals market firmly bid.
Especially as the rating agency, S&P, have yet to announce whether they will downgrade the US from its long – held AAA rating.
On the fundamental side, the mining company High Desert Gold announced the discovery of two new areas of high – grade gold/silver and base metal mineralization at its wholly – owned San Antonio Project in Sonora Mexico. Ralph Fitch, President of the Company stated “These new areas of mineralization which have similar characteristics to the recently drilled and reported 10.6 metres @ 3.029 g / t gold, 22.3 g / t silver, 0.32% lead and 0.26% zinc greatly increase the potential of the property and demonstrate the wide spread occurrence of gold, silver and base – metal mineralization on the property”.
