Increased Gold demand = Increased Silver demand = Higher Au + Ag
According to equedia.com, "the new Basel III Accord is to take effect early next year. In the new Accord gold will be promoted to teir 1 status and carry a zero risk weighting; gold currently carries a risk weighting of 50%". Please go to equedia.com for more details.
Basically, this zero risk weighting for gold will create more demand for the yellow metal, which in turn will help provide a higher price. So what does this have to do with silver? In short, higher sustainable gold prices will result in higher sustainable silver prices. Jmvho.
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