Silver Spends Week Above $21, Nearly Hits $22

Silver Spends Week Above $21, Nearly Hits $22

Last Thursday, Standard Bank warned silver market watchers not to be too excited about the white metal's upward momentum as it has recently been "finding strong resistance on approach of $20.50."

Since that time, however, the South African bank has been forced to eat its words — the very next day silver gave investors the Valentine's Day gift of a four-month high, hitting $21.295 per ounce as its appeal as a hedge against inflation grew. That came on the back of data "showing that price pressures may be building in the US," as per iNVEZZ.com.

This week, silver has improved on that gain, though Monday's US holiday meant it was a little slow off the blocks. That sluggishness did not last long though — Tuesday, after sinking to $21.28, its low for the week thus far, the white metal rebounded to $21.97.

Wednesday, however, brought another pause in silver's movement as traders waited for the release of the US Federal Reserve's January meeting minutes. Their publication at the end of that day showed that some Fed policy makers "may consider raising interest rates sooner than previously expected," ABC News states — unfortunately that news sent metals prices lower. For its part, silver closed down at $21.53.

Today silver again perked up, responding to disappointing US and Chinese manufacturing data, according to Reuters. It peaked at $21.90 midway through the afternoon, ultimately closing at $21.82 per ounce.

Company news

Vancouver's SilverCrest Mines (TSXV:SVL,NYSEMKT:SVLC) on Monday provided the results of further delineation underground drilling completed at its Mexico-based Santa Elena mine in the fourth quarter of 2013. N. Eric Fier, the company's president and COO, said that the program "was successful in confirming good continuity of the Main Mineralized Zone (MMZ) and high grades for the initial planned production stopes to be mined in 2014. Valuable information was also provided from this program to better define overall reserves and subsequent stope designs."