The Comex silver price is currently $US16 an ounce, up from around $13.80/oz at the start of the year.

“A major change in market expectations regarding the number of US interest rate rises this year and the implications of this for the dollar spurred a sizeable flow of funds into precious metals,” Metals Focus director Philip Newman said.

The consultancy expects silver prices to average $17/oz in the December quarter, peaking at $19.20/oz.

“There is plenty of scope for renewed activity to help prices rally,” Newman said.

Gross investor longs in Comex silver futures reached an all-time high last month and exchange-traded funds have also seen a big jump in interest.

Supply is set to drop slightly, but continues to outpace demand.

“This will mean silver’s destiny over the rest of the year will remain tied to investment, and especially professional activity,” Newman said.

 

“This creates risks for further liquidations in the near-term, although such corrections should both be limited and short-lived.”