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Despite a strong recent surge and continued strength in gold, the silver price today hasn't been able to muster the same strength. Last week was one where silver did not take its cue from gold, as it normally does.
Monday started out with a strong reversal after Dec. 4's powerful 3.2% silver price gain, with silver dropping 2.6%.
The next four trading days saw continued weakness that ended with this past Friday's close below the significant psychological level of $14.
Here's how the silver price action looked:
You can see that once silver lost its momentum, it just couldn't seem to regain it.
When you compare silver's action to gold and the broader market, here's how it looked:
Consider the comparison with stocks as measured by the S&P 500. Last week, both the silver price and the S&P 500 were down an almost equal 3.5%, while gold only fell 0.25%. And that was despite the expected Fed rate hike this week.
Meanwhile, the Volatility S&P 500 VIX Index has absolutely soared, running up from 16 to 24, marking a full 50% gain. Here again, I attribute most of this to the anticipation and uncertainty surrounding the upcoming Fed rate hike decision.
The week ended on Friday, Dec. 11, with silver buyers dominated by sellers. Silver couldn't attract sufficient buying to put on the same show as gold. Instead, it meandered around $13.90 at the end of last week, below the significant $14 level.
The silver price today is up about $0.60 to $13.70.
But news out of Asia looks supportive for silver prices.
About the Author
Peter Krauth is the Resource Specialist for Money Map Press and has contributed some of the most popular and highly regarded investing articles on Money Morning. Peter is headquartered in resource-rich Canada, but he travels around the world to dig up the very best profit opportunity, whether it's in gold, silver, oil, coal, or even potash.