Silver Enters Bear Market As Hedgies Flee
After tagging $19 the night of Trump’s victory, Silver prices have tumbled 15% (the biggest drop since Summer 2013’s taper tantrum). However, as large speculators dumped their longs en masse, this week also marked another milestone as Silver drops 24% from its post-Brexit peak (above $21) and entered a bear market once again.
As the dollar surges, Bloomberg reports that gold and silver holdings in exchange-traded funds are set for the biggest monthly drop in more than three years.
‘Everyone is looking for a December rate hike, and that’s what’s been priced into gold and silver at the moment,’ Tom Kendall, head of precious metals strategy at ICBC Standard Bank Plc, said by phone from London.
This post was published at Zero Hedge on Nov 24, 2016.