Silver prices may retreat as much as 20 percent this year as soaring demand for physical metal signals a “crowded”.
Sales of 1-ounce American Eagle silver coins have totaled 45,88,000 in January, heading for a record, according to data from the U.S. Mint. Silver futures in New York rallied 84 percent last year, climbing to a 30-year high of $31.275 an ounce on Jan. 3, as investors sought a haven against financial turmoil.
The coin sales are an indication of the level of interest in silver. It’s too popular. When the crowd discovers a good deal, it’s usually long over. Prices have more than doubled in two years as investors bought precious metals to protect against a weakening U.S dollar and Europe’s financial crisis. Holdings in exchange-traded products backed by silver have dropped 1.6 percent since touching a record in mid-December. The metal tumbled 24 percent in 2008 after gaining for seven straight years.
Sales of 1-ounce American Eagle silver coins have totaled 45,88,000 in January, heading for a record, according to data from the U.S. Mint. Silver futures in New York rallied 84 percent last year, climbing to a 30-year high of $31.275 an ounce on Jan. 3, as investors sought a haven against financial turmoil.
The coin sales are an indication of the level of interest in silver. It’s too popular. When the crowd discovers a good deal, it’s usually long over. Prices have more than doubled in two years as investors bought precious metals to protect against a weakening U.S dollar and Europe’s financial crisis. Holdings in exchange-traded products backed by silver have dropped 1.6 percent since touching a record in mid-December. The metal tumbled 24 percent in 2008 after gaining for seven straight years.
As per experts, now up movement of silver is almost over and correction of as more as 20% is expected.
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