Last week, silver declined for third consecutive week, to reach a seventh-month low. The price for the white metal registered a weekly drop of around 27%, becoming the biggest loser in the precious metals and global markets sell-off.
The weight of the Eurozone debt turmoil compounded the woes from the realization that the global recovery has well and truly stalled. The surprising thing has been the synchronized dives from stock markets and precious metals as safe – haven demand failed to buoy gold and silver.
However, the big losers have been the industrial metals, namely silver and palladium, which coincidentally mirrors the financial collapse seen in 2008 and could mean further pressure for the white metal.
The latest price trend show that silver is still not regarded as a safe haven, but rather as a precious metal with an industrial character. We have a similar view and believe that while strong hands will soon take over the helm in the case of gold, silver could remain under pressure.
Also of note, the rumour mill started turning again in late Friday, as talk about the eurozone and a possible Greek default kept the markets jittery.
