FX.co ★ Record silver price downfall since 1983

The silver prices declined by 30% from April 25 to May 6. Bloomberg reports the quickest price slump since 1983.
On April 25 silver hit the 30 years maximum at 49.85 dollars per ounce and then fell down to 34.1. July futures on Comex exchange became 28% cheaper and amounted to 34,27 dollar per ounce. On May 6 at 16:40 (Moscow time) silver lost 2,225 dollars and stopped at 33,975 dollars per ounce.
Sharp fall of the silver prices started on May 2 when CME Group company which owns Comex exchange announced the increase of silver deals deposit. Since May 9 the deposit is to grow by 84% from 11,5 thousand to 21,6 thousand dollars for opened positions.
Recently, the silver market had faced the strong price rises. From the beginning of the year prices almost twice increased, since April 2010 they became three times higher.
Bloomberg also notices that the silver price upturn was caused by the investors’ demand increase due to the dollar fall and low cost of debt capital on the American market. However, as soon as CME raised the deposit volume, the majority of players started to get rid of silver assets. Nevertheless, analysts forecast possible silver price increase in the third quarter of the year to the level of 45 dollars per ounce.
The strongest silver price downfall was registered in 1980. That time Hunt brothers tried to accumulate as much silver as they could to control the market. Their operations on the world market led to the growth of the precious metal price growth from 11 dollars up to 50 dollars per ounce so the US Government forced brothers to sell their assets and the price fell down below 11 dollars per ounce.
Last week gold also became cheaper. On May 6 gold lost 8 dollars and reached the level of 1482 dollars. At the end of April gold prices exceeded the level of 1530 dollars per ounce.