Silver prices are having a tough session, and traders who saw August as a month to rebound from a bearish July are wondering why silver is going down.
This week, the bid price for 24-hour spot silver is trading down $0.17 for a 0.7% loss. Its closing price as of yesterday was $19.415 an ounce, a 0.8% drop on the year. Silver began trading down on the year this past Friday for the first time since June.
And in August, silver prices have fallen 4.7%, making for the second-worst month of trading on the year, compared to March when the white metal fell 6.9%. Unless there is some sort of rally before month's end, this could be the worst August for silver since 2008, when prices fell 22.9%.
Silver futures contracts are down $0.10 on the week to $19.49. This is a 4.8% drop on the month, and a loss of about a dollar.
This decline in physical and paper silver is also reverberating in silver exchange-traded funds. The flagship silver ETF, the iShares Silver Trust (NYSE: SLV), which is backed by physical silver bullion in JP Morgan Chase & Co. (NYSE: JPM) vaults in New York and London, is down $0.13 on the week to $19.18 and $0.98 on the month. A close alternative to SLV, the ETFS Silver Trust (NYSE: SIVR) is down $0.17 on the week and $0.89 on the month, trading at $18.69.
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