The cost of precious metals renews multi-year highs. Gold prices reached $1865,35 per Troy ounce, which is only 3% less than the historical record. Silver prices rose to $22.81 an ounce — to nine-year high. The demand for precious metals maintained the large-scale monetary easing programs of the economies from Central banks, negative real interest rates on U.S. debt, as well as an expected decline in silver mining.According to Reuters, early in the day on Tuesday, 21 July, prices for precious metals renewed their multi-year highs. Gold prices on the spot market reached $1865,35 per Troy ounce. This is the maximum value of 9 September 2011. Monday prices were up 1.3%, and for three days of bullish trading more than 3%. To achieve an all-time high ($1920 per ounce, reached on September 6, 2011) there are less than 3%, or three days are optimistic bidding. The price of silver reached the level of $to 22.81 per ounce, the high from October 30, 2011. However, by mid-day the excitement in the market of precious metals and slept their quotes away from local maxima. The price of gold was about $1852 an ounce, 0.4 percent above Monday’s closing. The cost of silver went back to $21,57 per ounce, only 1.15% above the previous day’s close.The chief analyst of PSB Roman Antonov notes that the price support monetary and fiscal stimulus from the leading financial regulators. “After the adoption by EU leaders of the decision on the establishment of a Fund to support the economy, the market sentiment has improved, market participants are waiting for positive momentum from the US Congress, which discusses new measures of state support of the population,” he points out.Investment demand for precious metals is manifested on the background of negative real interest rates in the United States. In particular, as noted by BCS senior analyst Vitaly Gromadin, the yield on ten-year US Treasuries minus inflation “in a noticeable disadvantage since February of this year.” As a result, the assets exchange-traded funds (ETFs) are on the highs. As noted by Mr. whoppers, the influx of investors in the ETF with the physical storage of silver with the beginning of the year amounted to 35% (up to 820 million Troy ounces, or $17 billion) in gold funds — 26%.As said Vitaly Gromadin, huge government incentives “to help industrial demand, which is about half of total demand for silver.” The proportion of gold used in industry does not exceed 10%. As pointed out by Roman Antonov, silver prices also gained momentum due to problems with the supply of metal to the world market. In particular, the Silver Institute forecasted a decline of production by 7% in 2020 due to disruption in connection with COVID-19.Dmitry Mikhailovich
