Silver loses its shine as price falls

“For a precious metal, silver doesn’t seem very dear,” says Tatyana Shumsky in Barron’s. The price fell by 36% last year and has moved sideways in 2014, recently sliding back under $20 an ounce. Investors should not expect a rapid recovery.

Silver is a monetary metal, so it often tracks gold. But it tends to amplify gold’s movements in both directions, as the market is much smaller; last year gold fell by 28%.

The main problem now is that monetary policy is slowly returning to normal as growth improves, with the US Federal Reserve winding down its [...]

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