Silver has begun to repossess some of the ground it lost since the striking sell-off, which started after silver failed below the psychologically significant $50 mark on Apr 28.
July silver added 53 cents, or 1.4%, to $37.86 an ounce. In weekly terms, silver rose around 7.9%, with most analysts crediting the gain to a weaker dollar and the euro debt woes.
In particular on Friday, the temporary halt to trading on shares of Dexia which is rumoured to have a high exposure to Greek debt and will take a E3.6 billion hit to its second quarter results due to the restructuring plan it negotiated with the European Commission recently.
Gold and silver prices both added ahead of the long holiday weekend, also ahead of the month-end, yet analysts warn that thin volume and technical trading may trump upward momentum.
However, silver demand in China remains very much on the rise, with a forecasted 16% annual growth rise in industrial demand, paired with the growing appetite for silver related investment products implicating China‘s total consumption may well outpace domestic supply.
There is a widening demand for silver as investment in China, because of its lower entry point. It is also being increasingly recognised as a physical investment asset, which will support future demand. Silver price is very attractive right now.