Silver Prices Soar 11% in London, 4.2% in New York

Silver prices rallied this week, pulling away from the declines of the prior week. The metal soared 11% in London and 4.2% in New York.

Silver began its rally in the U.S. on Friday of last week, with analysts saying some investors were buying the metal as an alternative to gold which was too expensive for them.

Its largest intraday high was reached on Thursday at $19.845 an ounce, which was the best price since March 2008. The metal’s highest closing price, however, was on Wednesday at $19.663 an ounce. On Friday, New York silver for July delivery closed to $19.225 an ounce, rising 77.4 cents or 4.2%.

The London silver fix closed earlier Friday to $19.640 an ounce — its highest weekly level, soaring $1.94, or 11.0, percent for the week. The metal was a mini roller coaster with gains and usually smaller dips on each succeeding day of the week.

For two quotes of the week:

"Silver has been a side beneficiary of gold’s rally this week, moving to its highest price levels since March 2008," wrote Debbie Carlson of Kitco News. "Often called "the poor man’s gold," the white metal is acting like a proxy to gold… Like gold, those buying silver are doing so on worries that the sovereign risk problems in European can’t be quelled despite massive aid packages by the European Union, European Central Bank and the International Monetary Fund.

"Investment demand for precious metals is likely to remain strong in the coming weeks as uncertainty lingers about the effective implementation of austerity measures in troubled sovereigns across Europe," analysts at Credit Suisse in a note cited on MarketWatch.

London precious metal weekly prices follow:

London Fix Precious Metal Prices
	Gold		Silver	Platinum		Palladium
	AM	PM		AM	PM	AM	PM
5/7/2010	1199.60	1202.25	17.700	1661.00	1651.00	507.00	505.00
5/14/2010	1238.75	1236.50	19.640	1726.00	1721.00	541.00	536.00

 

London Weekly Bullion Prices
	Up	Down	% Change	Gain/Loss
Silver	X		4.9%	$0.92
Gold	X		2.0%	$23.00
Platinum	X		5.0%	$87.00
Palladium	X		8.5%	$47.00