Sprott Asset Management reports surge in investment demand for silver

Silver prices continue to hold above the $36 per ounce mark amid increased investment demand for the precious metal. Its price is now showing a record six-month growth since 2010.

One of the main signs of increased investment demand was the announcement of Sprott Asset Management USA about the success of its exchange-traded fund on silver, launched in January. Over five months, assets under its management reached $100 million.

As Sprott Asset Management CEO John Ciampaglia noted, silver was previously significantly undervalued compared to gold, but the situation is now starting to change. He said gray metal producers could find themselves in a favorable position amid rising prices, improving fundamentals, and increased industrial demand.

In a recent interview with Kitco News, Ryan McIntyre, senior managing partner at Sprott Inc., said that silver prices are likely to rise in the second half of the year as investor interest intensifies. He estimates that global financial conditions and the shift of capital from equities to hard assets will contribute to this trend.