Shares Silver Trust (SLV) took another nose dive and the silver ETF tumbled down by 4.6%. The latest better than expected non-farm payroll report contributed to SLV’s fall. Looking forward, will SLV keep falling to a new low? Also, how will the progress in the labor market impact the silver market?
In the past week, silver fell by 3.9% to reach $16.80 per ounce – its lowest level in recent years. SLV dropped to $16.12, which is also its lowest price since the beginning of 2010. The latest plunge in the price of silver also brought down silver produces’ stocks including Pan American Silver (PAAS) that plummeted by 5.6% on Friday to $10.3.
One factor that may have contributed to the latest fall in SLV is the early signs of the recovery in the U.S economy – specifically in the labor market. But is the labor market doing so well?
The recent non-farm payroll report showed a higher than expected gain in number of jobs: 248,000 jobs were added in September; July and August numbers were revised up by a total of 69,000 jobs.
The table above shows the changes in the labor market, the market expectations and reaction of silver. Back on Friday, SLV lost 1.8% off its value following the higher than anticipated gain in number of jobs.
The total gain in the past year (up to date) was slightly over 2 million jobs – nearly 27% higher than the same period last year.
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