The price of silver tumbled down in the past few days to its lowest level since October 2010. Since the beginning of the month the price of silver fell more than 17%. Moreover, the silver ETF, iShares Silver Trust (SLV) also plunged during the month by nearly 18%. The plunge in the price of gold is most likely pulling down other precious metals including silver and platinum. Does silver has a silver lining? Will it continue to tumble down?
The main issue is likely to be the shift in market sentiment. The ongoing decline the gold holdings of SPDR Gold Trust ETF (GLD), the recent recommendation of Goldman Sachs to short gold have also contributed to the bearish market sentiment in precious metals markets. Even in India, one the leading countries in importing gold, is cutting down its demand for gold. The rise in import tax on gold and the deprecation of the Rupee against the USD may have contributed to the decline in demand in this country. Wherever gold is heading silver is likely to follow. So what is up ahead for silver and gold?
The Minutes of the last FOMC Meeting
The recent publication of the minutes of the FOMC meeting from back in March may have been among the instigators for the recent tumble in the prices of precious metals.
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