On Tuesday silver traded above $18 for the first time in almost two years. The rally continued early on Wednesday with silver reaching its highest levels since April of 2017. Falling bond yields and the prospect of a Fed rate cut in September have been boosting precious metals with silver now catching up with gold’s impressive gains.
Fears of recession in the US increased after the release of economic data on Tuesday. Case-Shiller showed that home prices are rising at the slowest pace since 2012 and the Conference Board reported that consumer confidence dipped in August. The same day, yields on US 30-year bonds dipped below those for three-month notes. This unusual signal bond market signal indicates that investors are anticipating an economic slowdown. An inverted yield curve has historically been a reliable but lagging indicator of a coming recession.
Anglo Pacific Group plc (LON:APF) has a 2.5% life of mine NSR royalty on the El Valle-Boinàs/Carlés gold, copper and silver mine owned by TSX-listed Orvana Minerals Corp.