Silver has once again been punished in the context of a broad market sell-off with the metal now trading below $20 an ounce at its lowest level in almost two years.
Silver has endured a torrid few months ever since the Federal Reserve announced in April that it would be adopting a much more hawkish stance to try and curb inflation. Ever since then every negative market driver has been leapt upon to pour fresh pain on the price of silver and today is no different.
Live Silver Price – $/oz
The lower trading volume of silver compared with gold has resulted in these downward moves being more marked on silver with the metal also suffering from its greater industrial exposure at a time when investors are fearing a global recession is looming.
Silver seems unable to find any footholds right now with each week bringing fresh declines to see the price fall through levels that could have been considered supports.
For the time being, the metal is one to avoid but as soon as the sentiment turns more favourable buyers will have a great opportunity to buy a key component of the energy transition and electric vehicle revolution. The question investors have to keep on asking themselves is when that moment will finally come?
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