Prices for commodities such as crude oil and copper have been hit by fears that demand may suffer due to the ongoing European debt crisis and signs of economic slowdown in Asia; with the majority of demand for silver coming from the industrial sector it’s hard for the white metal not to get caught up in concerns of slowing global economic growth.
: Although the current 10-year bull market in precious metals has taken gold nearly 50 percent above its previous historical peak of $875 set in 1980, silver is still 60 percent below its all-time record high of $50 an ounce. This is proof positive, say silver bugs, that the white metal has much farther to go.
While the contagion of fear in the markets is providing silver with a much needed boost this week, ongoing economic problems around the world will eventually weigh on industrial demand.
The news story getting the most attention (and causing the most hand-wringing) this week is evidence China’s economy is cooling after the nation posted a growth rate of 11.9 percent in the first quarter of 2010.
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