A trading range for silver between $6(US) and $8 seems reasonable for months to come because of reduced investor interest and the build-up of supplies overhanging the market, said a spokesman for silver users in the U.S.
Speaking at the recent American Institute of Mining Engineers conference in Washington, Walter Frankland, executive vice-president of the Silver Users Association, emphasized that after the October, 1987, stock-market drop, precious metals had reacted differently from what most investors had expected.
“Gold and silver prices have been rather calm under the circumstances,” Frankland said. “Silver had been in the range of $6.20 to $7 and gold was trading between $440 and $500.”
Frankland said that since Oct 19, gold has lost some 10.6% of its value while silver has dropped about 24.5%.
According to Frankland, worldwide industrial consumption of silver has increased by 12% in the last five years.
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