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Silver Prices Today Fall, but We're Still Bullish in 2016

silver prices todaySilver prices today (Wednesday) moved slightly lower as the precious metal continues to suffer from an economic slowdown in China. At 12:55 p.m., futures for March delivery were trading at $13.95 per 5,000 troy ounces – the amount traded on each futures contract.

The decline in silver prices today came after the release of another disappointing report from China. The Caixin Purchasing Managers' Index (PMI) – which measures the economic health of China's manufacturing sector – fell from 51.2 to 50.2 in November. That was the slowest pace of expansion in 17 months.

As the world's largest importer of metals, China's economic contraction over the last several months has scared silver investors. Silver prices have fallen 6% since "Black Monday" on Aug. 24, when China's Shanghai Composite Index crashed 8.5%.

The surging strength of the U.S. dollar also had an influence on silver prices today. The U.S. dollar index has gained 4.2% over the last three months. That has caused the price of silver to dip 13% over the same period of time.

The rising dollar's bearish effects on silver prices worsened when the Fed raised interest rates on Dec. 16. A rise in interest rates weighs on silver prices because it boosts the value of the U.S. dollar. That makes precious metals more expensive to buyers using other currencies like the Chinese yuan.

But according to Money Morning Resource Specialist Peter Krauth, there are two important reasons to remain bullish on silver prices today. And one is an important announcement that indicates silver prices will soon begin their long-term rebound…

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  1. Raymond Guo | January 7, 2016

    Great Report

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