Silver Drops Below $50 Amid Declining Industrial and Jewelry Demand
- Reports
- 3
- Developments
- 1
- Repetition
- 67%
New informationRepeats or wire copies
What happened
Silver dropped 6.5% to $49, falling below $50 for the first time in 11 months. This decline occurred as demand for silver from industrial and jewelry sectors weakened. Meanwhile, gold prices fell 3.5% to $3,880.97 an ounce, and palladium slid below $1,000.
From theglobeandmail.com
Why it matters
The decline in precious metal prices coincides with a slump in technology stocks, which analysts suggest may have caused forced selling of safe-haven assets. White precious metals, including silver, lack the central bank purchasing support that gold has received in recent years.
Analysts are concerned that silver is fundamentally overvalued, a situation compounded by supply issues originating in Peru.
From theglobeandmail.com
Who's involved
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- James WillisSpeculative
Falling silver prices and industrial demand might hurt precious metal sales.
- Royal MintSpeculative
Falling demand and price pressure could reduce bullion sales volume and value.