Silver Futures Record Longest Rally Since August 2013

Silver Futures Record Longest Rally Since August 2013

After a fairly uneventful January, silver is capping off the first week of February with some good news: silver futures have recorded their longest rally since August 2013.

The week, however, did not start off quite so promisingly. On Monday, the white metal reached a high of just $19.46 per ounce; Money Morning's Tara Clarke commented at the time that it was "still discounted due to last week's drop." Tuesday was much the same, with silver trading in a fairly tight range of $19.32 to $19.61.

But on Wednesday, the story began to change a little. Silver jumped up to $20.02 during morning trading, though it ended the day about 15 cents lower. Explaining the increase, Bloomberg quotes Verdmont Capital's Scott Gardner as saying, "[p]recious metals are bouncing as the equity markets take a hit, and there is turmoil in emerging markets. Gold and silver are attracting safe-haven buying."

Today, silver improved upon its Wednesday high, rising to $20.16 early this morning. While the white metal was unable to keep its head above $20, it closed the day not far off from that price, at $19.95. And, as mentioned, silver futures, which settled slightly lower, at $19.928 on the COMEX in New York, "posted the longest rally since August," as per another Bloomberg article.

Echoing Gardner's statement, Phil Streible, a senior commodities broker at RJ O'Brien & Associates, told Bloomberg, "[p]eople are still looking for safe-haven assets. Traders are starting to reposition, based on concerns over emerging-market growth."

Company news

Making a splash on Monday was Silver Standard Resources (TSX:SSO,NASDAQ:SSRI), which announced plans to purchase the Nevada-based Marigold gold mine from subsidiaries of Goldcorp (TSX:G,NYSE:GG) and Barrick Gold (TSX:ABX,NYSE:ABX) for $275 million.