While the silver price has benefited from expected ECB easing, it continues to underperform gold, with the gold-silver price ratio near a two year high of 58 vs its two year average of 50.
Silver ETP holdings have been on a modest upward trend since early July, indicating some investors view the recent silver price range as a good entry point.
Key events to watch this week
Central bank policy meetings will take center stage for precious metals investors this week, with the Federal Reserve, the Bank of England and the European Central Bank holding meetings.
The pressure will be on both the Fed and the ECB to follow in the BOE’s footsteps in introducing more monetary stimulus. The US nonfarm payrolls release looms large this week and following the lackluster US GDP release last week could add further upside price momentum to precious metals prices, particularly silver and gold.
Comments from FOMC Board members have indicated that at least 150k new jobs per month are viewed as necessary to stabilize unemployment. Figures have been consistently behind target and if the trend continues it is clear the Fed will need to act.
ETFS Physical Swiss Gold Shares (NYSEArca: SGOL)
