Silver Plunges 8.1% in New York, 6.7% in London

Silver prices fell of a cliff this week in both New York and London. The metal suffered respective weekly losses of 8.1 percent and 6.7 percent.

Price declines began to slope lower on Wednesday, after gold struggled following news that China was beginning to tighten bank lending which boosted the US dollar. Gold generally moves opposite of the greenback, and silver typically tracks the yellow metal’s direction.

New York silver futures for March delivery ended at $16.932 an ounce, falling $1.50 this week. London silver was fixed at $17.28 an ounce, dropping $1.24 for the week. Prices peaked on Monday at $18.66 an ounce. Friday was the low point.

Silver is ready to rise, according to Dr. Jeffrey Lewis in an article on SilverSeek.com entitled 4 Reasons Why Silver is the Most Undervalued Commodity.

"Gold and silver typically trade within a range of 20-70 ounces of silver to the price of gold. Today, the ratio is roughly 62.2 ounces of silver to one ounce of gold, which is the highest it has been in years," states Lewis. "When the ratio nears 70, investors buy silver and sell gold. When it nears 20, investors are selling silver to buy gold. This ratio, which has long been important to commodity traders and long-term investors alike, suggests silver is ready for a rally."

London precious metal weekly prices follow:

London Fix Precious Metal Prices
	Gold		Silver	Platinum		Palladium
	AM	PM		AM	PM	AM	PM
1/15/2010	1132.00	1128.00	18.52	1610.00	1600.00	452.00	449.00
1/22/2010	1096.50	1084.00	17.28	1556.00	1540.00	435.00	432.00

 

Weekly Bullion Price Changes
	Up	Down	% Change	$ Change
Silver		X	-6.7%	-$1.24
Gold		X	-3.9%	-$44.00
Platinum		X	-3.8%	-$60.00
Palladium		X	-3.8%	-$17.00

 

These articles offer precious metals and silver coin news:

• Gold futures hit by global worries – MarketWatch
  Gold futures finished the week 2.4% lower on Friday, slumping to their lowest level in a month, hit by concerns that China’s moves to curb lending will dampen growth, reducing the precious metal’s appeal as a hedge against weak currencies and inflation …

• US gold ends lower as Obama’s bank proposal weighs – Reuters
  U.S. gold futures ended down on Friday, off their one-month low hit earlier in the session, as President Barack Obama’s proposal to limit banks’ risk-taking pressured the commodity markets …

• "V" For…Volcker – Jon Nadler, Kitco
  Precious metals continued to struggle overnight, albeit a slight rebound was attempted in gold as the US dollar eased following perceptions that President Obama’s plan to rein US banks in could dent demand for US assets (the greenback among them). Very mild physical buying emerged overseas, as would-be owners ponder whether the yellow metal might still find itself under $1075 or, perhaps $1000 before this phase is over …

• 2010 Silver Eagles Start Strong – SilverCoinsToday.com
  Similar to last week, two of three US Mint numismatic silver products declined in demand, but the newly released bullion 2010 American Silver Eagle Coins enjoyed spectacular sales. Of the remaining three silver sets still sold by the United States Mint, only the 2009 Silver Proof Set improved as compared to their prior weekly gain, climbing 4,560 against 4,118. The sets have reached 650,453 since their release on July 17, 2009 …

• 2010 Silver Eagles Explode – CoinNews
  In what has become almost a weekly routine of late, the United States Mint again reported unimpressive sales according to their latest figures. A few bright spots did emerge, however. The most impressive gains come not from a numismatic item, but from the US Mint’s bullion coins. Recall that the bullion 2009 American Silver Eagles sold out on January 12th, with 2010-dated coins not appearing for sale until this last Tuesday. The situation left authorized purchasers with no silver bullion options for almost a full week …

For silver news and prices, visit Silver Prices.