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.
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