Monday, July 18, 2016
Silver is getting smoked
Precious metal prices are sliding on Monday after the failure of Turkey's attempted military coup.
Silver and gold jumped on Friday after news that the army had moved against Turkey's President Recep Tayyip Erdogan. Silver and gold are seen as "safe haven" investments — when things are looking bad and you are not sure where to put your money, go for something that will always be valuable.
But the coup quickly fizzled out and, as a result, gold and silver are taking a hit. Silver is bearing the brunt of the fall, dropping to a 10-day low. The precious metal is down 1.16% to $19.93 after just over half an hour of trade in London:
Gold is faring better, down just 0.04% to $1,326.85. However, that's close to 2-week lows for the metal. Here is how it looks:
Accendo Markets' analyst Mike van Dulken says in an email to clients this morning: "Gold spiked higher amid the attempted coup in Turkey, and has subsequently settled back as it became clear the government was able to remain in control of the country."