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iNVEZZ.com reported that despite uncertainty about Greece and China, the silver price remained “well in the red” during midday European trading on Wednesday.
iNVEZZ.com reported that despite uncertainty about Greece and China, the silver price remained “well in the red” during midday European trading on Wednesday.
Generally investors turn to precious metals like silver in times of uncertainty, so silver’s lack of price movement is unusual.
As quoted in the market news:
The Greek financial crisis, however, has so far failed to induce any significant uptick. This has a lot to do with the perception that the Eurozone is now much better prepared to deal with a possible Grexit than it was a few years ago, analysts have noted. A worst-case scenario would see Greece leaving the single-currency with speculative pressure transferring to Portugal, Spain and Italy, birthing a much more serious threat to the euro.
Silver futures for September delivery on the COMEX division of the New York Mercantile Exchange had dropped 1.99 percent to $15.010 as of 13:40 BST today. The contract has now lost about three percent since Monday.
David Jollie, Mitsui precious metals analyst, told Reuters:
The market is waiting for a trio of reasons: uncertainty over which direction Chinese equities might move in next comes at the same time as the Greek parliament’s vote on the latest debt proposal and Janet Yellen’s comments later today. With a degree of short-term uncertainty present in each of the three major markets, investors and other players may wait before deciding to act.