Silver is Having Its Worst Week in Over Three Years

Silver dollarSilver is selling off hard once again today, as bullish bets on precious metals amid the Brexit and global central bank accommodation continue to unwind.

From ZeroHedge:

With the worst week (and it’s not over yet) since April 2013, Silver is getting slayed since it spiked towards $20 on Friday…

The selling may not be over yet, either. The gold/silver price ratio is still elevated, which means silver is historically still overvalued relative to the yellow metal:

But Silver may have further to fall as Gold/Silver (at 72.5x) remains below 75x pre-Brexit levels…

Earlier today, well-known analyst Dennis Gartman postulated that gold’s downturn may be at least partially due to a London-based hedge fund meltdown, which involved forced redemptions and the liquidation of large gold positions. Analysts are beginning to make sell calls in the gold and silver mining sector as well.

As goes gold, so too tends to go silver. And right now, both precious metals are feeling downside pressure not seen in several months.

The iShares Silver Trust ETF (NYSE:SLV) fell $0.47 (-2.76%) to $16.39 per share in Thursday morning trading. Year-to-date, the largest ETF tied to the spot price of silver has gained 24.41%, but those returns are rapidly deteriorating. The fund has now lost almost 17% of its value since hitting multi-year highs just a few months ago.