A return to hell for silver

Silver suffered its sharpest drop in three decades this week, after approaching the $50-an-ounce level earlier this year. The slide is a reminder that silver "is a precious metal with an industrial character".

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.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.