Silver held through four exchange- traded product providers climbed to the highest amount since at least February on concern government plans to pump money into the global economy to support a recovery may devalue currencies.
Holdings jumped 136.168 metric tons to 15,009.54 tons yesterday, exceeding the 15,000-ton mark for the first time, data compiled by Bloomberg show. Silver for immediate delivery rose as much as 1.4 percent to $29.0650 an ounce after rallying yesterday to a 30-year high of $30.7025 an ounce. The price traded at $28.5225 an ounce at 12:03 p.m. in Seoul.
“Silver has an aspect as a means for a store of value,” Park Jong Beom, a trader at Tong Yang Futures Trading Co. in Seoul, said by phone today. “But actually it’s closer to a commodity used in industries.”
Silver has gained 69 percent this year, outperforming gold’s 27 percent gain. One ounce of gold bought as little as 46.5988 ounces of silver yesterday, the least in four years, data compiled by Bloomberg show.
The dollar held gains from a three-week low against the yen on prospects an extension of tax cuts will bolster an economic recovery in the U.S. President Barack Obama yesterday agreed to extend Bush-era tax cuts for two years. A report tomorrow is forecast to show U.S. initial jobless claims declined.