Silver plunges quicker than gold

By Greg Roberts
Sydney Morning Herald

silbars160The price of silver has plunged quicker than that of gold since Federal Reserve boss Bernard Bernanke’s positive comments on the US economy three weeks ago.

In that time silver’s price has plunged 13 per cent to about $US18.80 ($A20.86) an ounce currently — and 35 per cent for the year — compared to a fall of less than 12 per cent for gold.

That’s a far cry from the record high prices close to $US50 in 2011, which many predicted would return in 2013 until Dr Bernanke’s comments.

His flagging of a cutting back on economic stimulus in the US has seen traders pour money back into the US dollar in anticipation of less cheap cash and higher interest rates, while taking money out of commodities including silver and gold.

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