Silver Price Reverting to Pre-Summer Levels

The summer months are often a quiet time for the resource sector, with many market participants taking the old adage “sell in May and go away” to heart. As a result, investors tend to look forward to September, when prices and market activity typically pick up.

Unfortunately, this year that pattern simply hasn’t held true for silver – in fact, quite the opposite has happened. Silver’s unseasonal price rise isn’t surprising given that the summer brought tension regarding conflict between Ukraine and Russia and in Iraq — after all, as a safe-haven asset, silver is a magnet for investors when geopolitical uncertainty hits. The current downward movement is also unsurprising given that the US dollar is currently on a tear.

That said, silver’s unusual behavior certainly has investors wondering what’s next for the white metal.

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