by Adam Hamilton
Silver officially entered a new bull market this week, decisively crossing the necessary +20% threshold. Speculators and investors alike are returning as awareness spreads of how radically undervalued silver is compared to prevailing gold prices. When silver awakens to a new bull market after a long bearish slumber, massive gains are usually unleashed. Silver’s tiny advance so far is just the tip of the iceberg.
This Tuesday, silver surged 4.4% higher on strong Asian bidding in parallel with gold. The catalyst was fascinating, China finally launching its long-awaited yuan-denominated gold benchmark. China is the world’s largest gold producer, importer, and consumer, a commanding position that should grant it much bigger say in the gold industry. The new yuan gold price will ultimately challenge London’s century-old hegemony.