The market for silver futures could see a rebound in coming weeks on the back of the recent agreement in Europe.
Bloomberg reports that traders are hopeful that the precious metal could benefit from an improving European economy. Unlike gold, which is primarily ornamental, silver serves as both an important industrial metal and can receive support from both investment and production.
"Prices now look relatively cheap to where they have been recently," David Wilson, an analyst at Societe Generale SA, told Bloomberg. "The backdrop is still very supportive for gold and we think that silver will leverage off the back of that. Emerging markets are going to be important for demand for sure."
Despite concerns about the volatility of the metal and clear evidence that it serves poorly as an asset haven, silver remains one of the best investments over the past year, and could set a record annual average price.
Now Reuters reports that European leaders have released a draft proposal agreeing on the size of the bailout fund needed to maintain stability, offering some hope before Sunday's upcoming meeting that an agreement could ultimately be reached.
At 11:22 on Thursday, silver fell 90.2 cents to $30.375 per troy ounce, a decline of 2.88 percent.
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