Silver declined around 7% this week, falling to its lowest value in over three weeks, but pulled back following worse-than-expected US data.
Recently, market talk about precious metals has been of being in a bubble situation, with a burst likely imminent. The focus has mostly been on gold, however, with silver appreciating 80% in one year, and most of it in the final quarter of the year. If any bubble were to form, most analysts believe we should look to the other precious metals beside gold.
Most analysts believe the longer – term forecast to be extremely bullish. However, in the near-term some warn of impending downturns. Silver is known as the one that corrects the most among the metals. Investors should prepare for more volatile and violent movement, advise market analysts.