On two days in December, silver prices opened the day trading at more than 40 dollars a troy ounce. On both of those days, silver failed to close at the same level. After that, the price of silver began to drop. As a matter of fact, on December 8, New York trading for silver dropped to $28.22 a troy ounce. On the days before, the closing prices were $29.75 and $29.71.
On top of that, Gold failed to stay at its record high levels as well. It fell from values of more than $1,400 a troy ounce to only $1,382.50 a troy ounce on December 8. There are few precedents for drops in the value of gold, although the financial crisis of 2008 experienced similar behavior.
Gold, the precious metal that typically only rises in price, closed at a record high of $1,415.30 on the sixth of December. The previous record was $1,409.80, on November 9. On December 7, it dropped somewhat, to $1,408.30.
Silver prices have not reached $30 since February of 1980. On a Morgan dollar or silver dollar, silver is worth $23.20. Most coins made before 1965 made with silver have a value that is more than 21 times the face value of the currency.
Concerns that China will issue yet another interest rate hike are a likely culprit for the drop in the value of gold. On Friday, China raised the reserve requirements for its banks by half a percent, which was the third increase for lenders in one month.
Investors appeared more interesting in trading profits than in continuing the momentum of the rally for gold. Most analysts expect buying to continue, however, due to the fact that gold can be purchased at a “discount” when prices drop. The quick flip in gold prices suggests that buyers are hoping to make a short term profit off of gold rather than investing in it long term.
