“As long as you have concerns about the U.S. economy, there will be capital moving around, and some of it will inevitably find its way into precious metals,” Peter Hug, director of precious metals at Kitco Metals, said in the WSJ article.
Moreover, as silver prices inched higher this year, investors who were betting on a decline were forced to hedge bets by purchasing long contracts, augmenting the rise in precious metals in a so-called short squeeze, Hug added. [Enjoy Silver’s Run While it Lasts]
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Full disclosure: Tom Lydon’s clients own shares of GLD and SLV.