Silver futures, which dove about 30 percent in value within 14 days after falling just short of striking the $50 per troy ounce psychological barrier in late April, are set to rise again, the Philadelphia Inquirer reports.
Some on Wall Street are speculating about the precious metal's immediate future after last month's run-up to record prices set in January 1980. While 0.50-plus cents short of the record price of $50.35 per troy ounce in late April, silver also was under scrutiny as a potential hard money unit, akin to gold.
"We will not be surprised to see many funds and governments diversify their gold holdings into silver in 2011," Michael Purves, BGC Financial derivatives research head, told the news outlet.
At 11:16 a.m. on Wednesday, silver futures gained 3.85 percent, a $1.392 climb to $37.52 per troy ounce.
Now appearing to be hurtling toward the $40 per troy ounce mark, silver futures are bouncing back from the early-May plunge. About two weeks after nearing $50 per troy ounce, the precious metal weighed in at about $31 per troy ounce in mid-May.
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