No other precious metal offers the wild ride silver does. Any investor in silver will tell you, investing in the ‘other’ precious metal, is about strapping yourself in, and hanging on. The multiyear silver chart below proves my point.
This week 6% fall for silver— and down a total 12% for the month of September — is emblematic of silver’s wild ride.
Precious metals have been under pressure for several weeks, and this week silver caught the brunt of the selling. Given silver’s utility to industry, it’s highly sensitive to any changes that suggest economic activity is increasing or decreasing. China’s manufacturing contraction is likely to have been a force multiplier on silver during the week.
The current pressure on silver, means any short term price forecast issued at the start of the last month are no longer relevant. We have a rough few weeks ahead.
Those taking a longer term view on the metal however, there are better months coming. Silver is nearing the 50% Fibonacci retracement level. A bounce from here would be extremely bullish. And, as I’ve mentioned before, silver has a bright future.