Written by From the GoldMoney Dealing Desk
The silver price has hit a new 31-year high at just over $40 per ounce as fears over inflation mount. Brent crude reached a record sterling price of £74.60 per barrel yesterday, and at over 86 euros a barrel, was within 7 euros of breaking the all-time record euro price as well. (Check Spot Silver now)
The supply-side of the silver equation was helped yesterday by news that striking workers at Bolivia’s San Cristobal mine have agreed to hold talks with the management of Sumitomo Corp – the mine’s operators. San Cristobal, a silver, lead and zinc mine, is Bolivia’s largest mine. As GoldMoney’s Roman Baudzus reported last week, a continuation of the strike would be unlikely to affect the silver price.
However, Bolivian president Evo Morales is increasingly unpopular in his country, owing to high inflation, food shortages and political scandals. A long strike at San Cristobal could have had important political ramifications, and could have led to discord at other mines in this silver-rich country.
Silver investors will be interested in listening to this King World News interview with GoldMoney Chairman James Turk last week. In it James talks about the persistent backwardation that has existed in the silver futures market and how bullish this is for silver. Backwardation means that the prices of all futures contracts in a given commodity are lower than the spot price, which is indicative of intense demand.