As silver futures prices rise, physical silver is also favored by funds, indicating that more investors are betting on a sharp rise in silver, with the world's largest inflow of silver ETF funds hitting a six-and-a-half-year high.

The world's largest silver ETF--ishares Silver Trust (SLV) saw its biggest inflow in six and a half years on Wednesday, an increase of $133 million.

(silver ETF inflows hit a six-and-a-half-year high)

Ishares Silver Trust, which has $5.3 billion in assets under management, ushered in large inflows this week when gold and silver coins reached their highest level since 1992. For now, gold and silver coins are still above the peak set during the 2008 financial crisis and are now around 89.5, when the peak was around 85.

In the case of high gold and silver coins, precious metal risk aversion finally spent on silver. Gold had risen sharply because of uncertainty in the global economy, but silver was motionless.

At present, silver prices show no sign of peaking. And, although gold and silver prices have fallen in the past few trading days, but in the long run is still in a high position, because silver still has more room to rise.

At the same time, the Fed is likely to cut interest rates at the end of the month (July 31), which will also boost precious metals.