Silver prices are taking a dive today (Thursday) on the heels of encouraging economic news, profit-taking, and anemic summer trading.
Though it has only very briefly brushed against the $21-an-ounce mark, the silver price today reversed course from last week when the white metal was down for the first time in six weeks.
Barring a big surge later in the day, silver prices are likely to finish down on the week for the first time since the last week of May.
Portuguese bank struggles helped to bolster the silver price last week, but those gains were erased yesterday (Monday).
The price of silver is up for the sixth week in a row, refusing to languish in the summer doldrums, which have historically kept the white metal from sustaining rallies into July and August.
Heading into the week silver prices were cooling off from a June rally, potentially signaling the start of the summer doldrums, when the white metal generally sees weak trading.
Silver prices began to flounder this week coming off impressive gains in the previous month, but the U.S. Federal Reserve provided a quick spark in afternoon trading Wednesday.
Silver prices have been sideways this week, cooling off from a mid-June rally sparked by inflation-minded investors wary of the U.S. Federal Reserve's dovish talk.
The prospect of investing in silver in 2014 started off looking dismal. Silver was down by almost 50% since the beginning of 2013. However, the commodity appears to be making a comeback, rising 12.5% in June alone.
Silver prices got a slight bump this week, as traders continue to feed into the momentum of precious metal investments generated by fear of earlier-than-expected interest rate hikes. Silver prices are up about 1.3% on the week to $21.13 as of 12:17 p.m. today (Friday).
After 117 years, the current London Silver Fix is shutting down.
In fact, we know it's going to happen on August 14th for certain.
Free marketeers are excited; for years many have maintained that silver prices are being manipulated.
Ted Butler, for one, publishes commentary with a special focus on the silver market. Ted's likely the most outspoken observer of daily silver futures price machinations anywhere. I did an extensive interview with him on this very topic in 2012.
Now comes confirmation that the London Silver Fix is finally closing shop.
That in itself isn't proof of manipulation, but the circumstances certainly raise some intriguing questions.
There are clues from its history worth studying - and profits to be made from its demise…
Silver prices today (Friday) are still on the rise after ripping through the $20 an ounce level Thursday.
July Comex silver was trading up $0.20, or 0.95%, at $21.10 in morning trading Friday. The silver price hasn't seen today's $21 level since March 17.
Gold, silver, and the FOMC meeting today: Precious metal prices were fairly steady Wednesday morning awaiting the typically market-moving statement from the Federal Open Market Committee (FOMC) meeting today. The spot gold price was last trading down $0.90 at $1,271.50. July silver prices were last quoted up $0.003 at $19.735 an ounce.
Over the last several years, investors have shown a keen interest in shiny assets as the U.S. Federal Reserve liberally printed money and distrust in dollars grew. But that interest has waned as the Fed slows its bond buying.
The silver price today moved solidly higher in morning trading following some positive economic data out of China.
July Comex silver traded up $0.392, or 1.26%, at $19.73, after the preliminary HSBC China manufacturing purchasing managers index (PMI) for May came in at 49.7. That was up from 48.1 in April, and was the best reading in five months.