Silver Reached a New Low – What is Next?

The silver market cooled down again last week. Last week’s FOMC meeting may have provided the fuel to drag down the price of silver to its lowest level in recent years. Also, let’s examine the latest developments in the silver market.

During the previous week, the price of silver decreased by 4.13% to reach $17.79 – its lowest level since 2010. The silver ETF iShares Silver Trust (SLV) also tumbled down by 3.9%. Silver related companies including Silver Wheaton (SLW) and Pan American Silver (PAAS) also fell by 7% and 4.8%, respectively.

FOMC and Silver

The recent FOMC meeting didn’t provide much drama or big surprises, but it did provide enough news to drag down the price of silver and induce a rise in purchases of the US dollar.

As you can see from the table above, the recent adverse reaction of silver to the FOMC’s meeting wasn’t something new and had occurred in most meeting of the past year. It seems that the FOMC is turning a bit more hawkish from one meeting to the next, which isn’t good news for silver.

For the rest of the report you can see it at Seeking Alpha

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