Silver Tumbles Nearly 20% in Three Weeks

Silver prices ended the first week in February with deepened losses. The metal has caved by almost 20 percent since mid-January.

While the enormous losses could present a buying opportunity next week, little is in the news front to suggest a direction of north or south. Precious metals have thus far been commanded by the winding of the US dollar, which rallied this week to an 8-month high against the euro. Bullion tends to move in the opposite direction of the greenback.

New York silver futures for March delivery ended at $14.830 an ounce, plummeting $1.36 an ounce, or 8.4% this week. The metal has fallen 19.5 percent in three weeks.

London silver was fixed at $15.17 an ounce, plunging $1.12, or 6.9 percent since last Friday. It has dropped 18.1 percent in three weeks.

"Silver was down 13 cents on the open [Friday]. Some stabilization and partial recovery from this ugly nosedive is now being hoped for, but the charts look quite damaged and cautious prevails, despite the predictable calls for backing various buying trucks up to the ramp and the still starry-eyed $1500 gold prognostications being churned out by the day," wrote Jon Nadler, senior analyst at Kitco Metals, Inc.

London precious metal weekly prices follow:

London Fix Precious Metal Prices
	Gold		Silver	Platinum		Palladium
	AM	PM		AM	PM	AM	PM
1/29/2010	1082.75	1078.50	16.29	1514.00	1512.00	419.00	419.00
2/5/2010	1052.25	1058.00	15.17	1477.00	1475.00	387.00	395.00

 

Weekly Bullion Prices
	Up	Down	% Change	Gain/Loss
Silver		X	-6.9%	-$1.12
Gold		X	-1.9%	-$20.50
Platinum		X	-2.4%	-$37.00
Palladium		X	-5.7%	-$24.00

 

These articles offer precious metals and silver coin news: In related silver and gold news, interesting or quick-read articles from the week include:

• Gold slides as dollar jumps to 8-month highs – MarketWatch
  Gold futures slumped on Friday as a drop in the U.S. jobless rate couldn’t offset a surge in the dollar, which jumped to 8-month highs against the euro on fears about sovereign debt in Europe. Gold for April delivery fell $10.20, or 0.9%, to end at …

• Gold Falls to Three-Month Low as Dollar Gain Damps Metal Demand – Bloomberg
  Gold futures fell to a three-month low in New York as the dollar’s rally reduced demand for the precious metal as an alternative investment. The euro fell to an eight-month low against the greenback on mounting budget concerns in countries such as …

• Whack-A-Mole, The European Edition – Jon Nadler, Kitco
  Gold’s price woes mounted overnight, with prices cratering some $16 further after Thursday’s near $50 freefall. Spot gold drew close to the $1047 per ounce mark, following its worst single-day rout in 16 months. Risk appetite has been placed in a deep freeze on the heels of yesterday’s poor US jobs report. Adding to trouble in the commodities sector is the surge in euro-oriented jitters engendered by the ‘whack-a-mole’ patterns of debt troubles that continue to …

• US Mint Sales: Silver Products Fall to Three – SilverCoinsToday.com
  The portion of the weekly sales report from the United States Mint covering silver coins is getting smaller and smaller. Last week’s Annual Uncirculated Dollar Set sell out brought the amount of US Mint’s silver related offerings down to three — two collector driven products released last year, and the new 2010 American Silver Eagle Bullion coins …

• US Mint Eagle Bullion January Records – CoinNews
  The United States Mint has closed out the month of January, publishing strong sales figures for its precious metals bullion coins. American Eagle Silver Bullion Coin demand hit a record pace. Interest in American Eagle Gold Bullion Coins was elevated, reaching the top ten in all-time January sales. The numbers are more than interesting considering several factors, including New York gold prices falling 1.1 percent in January and silver prices plunging …

For silver news and prices, also see Bullion Prices.