No wonder silver is often called the devil's metal. Having approached the $50-an-ounce level earlier this year, it suffered its sharpest drop in three decades this week, sliding by 34% in three days. It then rebounded by more than 10% to just over $30 an ounce.
The slide is a reminder that silver "is a precious metal with an industrial character", as a Commerzbank note puts it. Silver may be a traditional monetary metal, but that doesn't make it a safe haven. It is widely used in industry, and with fears of recession in Europe and America mounting, confidence in its prospects has fallen.
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