Silver declined for the third consecutive week as broader commodity prices all declined. It also bucked the trend of gold, which garnered attention from risk – off trades towards the end of the week.
A large support zone is seen around the $35 mark for silver – the last weekly close below $35 was early March – as silver has been one of the most volatile commodities in the past few months.
After a record surge in prices towards a record high just short of $50, silver crashed back down in May to around $32.
Many analysts have struggled to give a reason to these large swings, with some speculating the extreme depreciation was due to price manipulation. “In my heart of hearts I believe it was a manipulation. There was no market, it was a setup. They‘ve just pushed it down. It‘s ridiculous,” said Eric Sprott, CEO of Sprott Asset Management.
Looking ahead, Sprott is preparing for the next bull – run in silver if the US implements QE3. “A lot of that QE1 and QE2 are giving a tailwind to gold and silver. If you want to tell me there‘s going to be a QE3, I‘m going to tell you silver will hit $50 before we even know it,” Sprott added.
