It seems the price of silver has been spiraling out of control lately, down 13.2% from its $17.71 peak on June 6. This morning, it traded 1.3% lower at $15.37 – the lowest since prices closed at $15.38 on April 8, 2016, over 15 months ago.
The metal took an undeserved punch in the gut last Friday, July 7, when silver prices fell 2.3% following the stronger-than-expected June jobs report.
But the even bigger news for the silver price last week may not be its latest weakness, but rather a flash crash on Thursday evening around 7:00 p.m.
Some are calling the event a ‘market glitch,’ but experts are blaming high-frequency trading by computer algorithms, whereby selling feeds on itself at lightning speed. And sadly, these events are becoming increasingly common.
You’ll note this flash crash was significant, pulling silver down 8.7% very briefly from around $16.10 to $14.70. Although silver recovered quickly, it may have set the tone for Friday’s session alongside the jobs report.
All of this begs the question of whether or not silver prices are at a bottom yet. Judging by certain technical indicators, we may be near a bottom now, and I think the metal will rally higher as demand from one of the world’s biggest silver markets continues to explode.
This post was published at Wall Street Examiner on July 10, 2017.
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