Silver Sinks Below $21 as Metal is Punished By Growth Concerns, Prospect of Rising Rates

Silver’s slide looks set to continue this week with the metal now trading below $21 an ounce having ended last week touching levels last seen in July 2020. 

Silver has found itself caught up in the broader sell-off on equities and on gold, punished for being an industrial metal at a time where growth forecasts are being trimmed and hammered for its lack of yield at a time of rising interest rates.

Live Silver Price – $/oz

The turnaround in silver’s fortune has been pretty dramatic with the price falling from close to $26 an ounce in mid-April to below $21 an ounce barely a month later. On each occasion the price has fallen below a significant technical or psychological threshold, bullish investors will have hoped that the metal would find support to avert the slide. Yet for the short-term, silver is seemingly powerless to stem the bleeding of its price.

Yet once markets finally pause for breath after some extremely volatile days that have seen huge losses across a number of different asset classes, silver will surely represent a strong buying opportunity with the fundamental case that was supportive in April still true today.

Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience in writing about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News. 

As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewable energy and the challenges of avoiding greenwashing while investing sustainably.

This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.