[Ed. note: Dry powder anyone? Looks like the cartel is about to take silver down another leg. $22 again? $20?]
Societe Generale analyst Robin Bhar says the metal remains plagued by oversupply and the longer-term bear market in gold will take prices lower.
by Clara Denina, MineWeb.com
Silver prices swung wildly in the wake of extreme losses seen in gold last month, but while investors fled bullion-backed funds in droves, holdings in the less glamorous precious metal are remarkably robust, for now.
Silver carries the precious and industrial metal tag due to uses in jewellery and manufacturing, but its fundamental picture is far from rosy.
The global market is in oversupply to the tune of some 4,000 tonnes in 2013, while industrial demand – accounting for some 50 percent of total usage – has been clipped by a slowing solar panel sector, where high profile names such as China’s Suntech Power Holdings have fallen on hard times.