Why Silver May Continue To Outshine Gold

While gold has been in the spotlight, silver prices have also rallied and are near the highest level in nearly 13 years. Daniel Ghali, Senior Commodity Strategist with TD Securities, looks at the factors that could drive silver prices higher.

Transcript

Anthony Okolie – While gold prices have been in the spotlight, silver prices have also rallied and are near its highest level in almost 13 years. Daniel Ghali, senior commodity strategist with TD Securities, joins us now to discuss. And Daniel, welcome back to the show, and very interesting times.

Daniel Ghali – Yeah, thank you for having me.

Anthony Okolie – All right, so as I mentioned, it’s very interesting moves in the silver market. Now, you say we’ve been seeing a price breakout. What’s happened?

Daniel Ghali – Yeah, what’s interesting, right now, the silver market is buzzing with excitement because prices broke through $35 an ounce. That’s been arranged. That’s been very difficult to break through over the last several years. And the last time silver prices broke through this level, we traded $50 an ounce in a matter of weeks, within six weeks.

So of course, the excitement is building. We think this has been a long time coming. And in fact, we think the current market structure favors these kinds of mini squeeze events going forward.

Anthony Okolie – OK, so walk us through some of the mechanics behind such moves. And we’re looking at a bit of a global imbalance between the big trading hubs in London and New York, correct?

Daniel Ghali – Yeah, correct. That is part of what has caused the imbalance in silver markets right now. Walking you through how this process has worked and how we think it might work going forward, the breakout itself, when we cross through that $35 an ounce level, was