It's time to start buy back in Silver
In June alone, silver has plunged 13 per cent to about $18.80 an ounce currently and 35 per cent for the year compared to a fall of less than 12 per cent for gold.
Silver prices are dropped to that extend to start a buy back, analysts said.
Ever since the US Fed commented positively on US economic recovery, silver keep falling,quicker than gold to as low as below $19 an ounce.
In June alone, silver has plunged 13 per cent to about $18.80 an ounce currently and 35 per cent for the year compared to a fall of less than 12 per cent for gold.
Analysts said no forecaster predicted such a scenario for silver and most of them seen prices hitting $50 this year.
Silver in particular was hit by concerns that Fed might reduce economic stimulus in the US which has seen traders pour money back into the US dollar in anticipation of less cheap cash and higher interest rates, while taking money out of commodities including silver and gold.
If US economy keeps improving, the printing of money slows and the dollar strengthens, then the safety of silver and gold is less attractive.
However some analysts said silver can still perform well if the US economy improves since it has strong industrial applications and is not as much of a defensive, value-hedging asset as gold.
Many analysts are of the view that its time for silver to start a buy back as prices are at near three-year lows.
In its favour is that silver is under-performing gold despite the latter's own heavy falls: an ounce of gold at $1212 would buy 66 ounces of silver now, compared to 33 ounces when it was at its 2011 record high.
Sumber : Google
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