Silver continues to decline
Silver continued its decline today, ending the week on a two and a half year low. The white metal has been in freefall for most of the year as investors were encouraged by rallies in the financial markets, driven by monetary stimulus.
Silver started the week and instantly set its path for a week long low of $20.84 per ounce, which represented its lowest price since 2010. However, with Ben Bernanke’s comments around the possible end to the Federal Reserve’s bond purchasing program, indices around the world began to decline, allowing Silver and Gold to rise as investors poured their money into commodities that run inversely to the markets. By the time that the FTSE closed in London today, Silver was trading at $22.51 per ounce, a significant rise over the course of the week.
These gains were all the more intriguing as they coincided with the announcement of manufacturing declines in China for the first time in 7 months. With silvers main use being that of industrial and manufacturing, it caught a lot of investors out.
Many analysts are predicting that Silver will rally towards $33 later this year, the devils metal is surely going to become a hot topic of debate in the coming months — particularly if monetary stimulus is slowed down around the world.