Rising silver demand seems to support the idea that investors are reaching for cheaper silver. The U.S. Mint calculates that American Eagle silver bullion coins sales have reached 42.37 million ounces year-to-date, just shy of the historical high 42.68 million ounces sold in 2013, reports Ed Moy for NewsMax.
Moreover, short-covering could also be propelling gains. A short squeeze occurs when investors with heavy short positions are forced to cover, or buy back, their shorts in the event of positive reports that result in a share appreciation. Consequently, the additional buying momentum from short sellers covering their options contracts help bolster share prices even further. However, the ongoing U.S. dollar strength could keep silver from breaking out, despite short covering, writes Jim Bach for ETF Daily News.
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