The recent sell-off in silver weighed on the white metal’s performance last week. Silver price ended slightly lower, after having ranged from a low of $26.10 to a high of $33.48. However, it has found support from the 100 – week moving average and met resistance at the 55-week moving average. Market players are likely to keep these levels in focus when the precious metal decides which direction to take.
The media frenzy continues to surround the past week‘s talks of burst bubbles, for both gold and precious metals. However, mainstream media has never been able to predict a bubble top and advice caution if looking to sell gold.
During the month of September, silver hit a high of $43.39 early on, but steadily declined until the massive sell-offs seen on the 22nd and 23rd of September. Consequently, silver shed around a quarter of its total worth this month.
The gold:silver ratio skyrocketed to a high of 54.5 in the past few weeks having ranged around the 44 to 45 mark for most of September and August. The ratio currently stands at 53.0.
Looking ahead, of note are the reports that deliveries of physical silver are “backing up” as the recent low prices have investors rushing to buy, and for immediate delivery. Furthermore, premiums are on the rise and analysts suggest the surge in demand could help push prices up again.
