Gold and Silver prices got a haircut today. Silver is down to 16.40 or so from its recent 17.40. A $1 drop in a day represents a nearly 6% drop in the spot price of silver. Gold is also down significantly.
And why this wild drop?
As is seemingly the normal case now days, theories for trading action are trotted out as news worthy analysis. Reuters said it was because investors are betting on Greek Banks getting continued bailout funds.
Bloomberg says the drop is due to “speculation that Chinese demand will fall during the Lunar New Year holiday“. However, when you get into the article, the author describes both situations as weighing on gold prices.
Only two weeks ago though, Reuters announced that Chinese demand was holding up ahead of the Lunar New Year.
How you react is determined largely by what kind of a precious metals buyer you are.
What do you care more about; demand from Chinese Lunar New Year buyers or that central banks bought 2nd highest amount of gold in 2014 than anytime in the past 50 years?
This is a very interesting article, and I am glad that I found it. I have been looking into selling some of my grandmothers old jewelery, and I have been monitoring the market. Hopefully we will be able to get these sold soon, because I am sick of holding on to them. I am kind of in the need for money, so I think that I am going to go ahead and sell them.
That is very interesting that silver prices have been cut down to 16.40 from the 17.40. Really hoping that it can go back up, as well as the gold prices as well. This will be something that needs to really be changing here soon. The sooner we can get these prices back up the better.