Silver prices continue the downward trend in March 2015

Silver can't escape macro pressures – continues secular downtrend (Part 1 of 2)

Silver price movement

Silver April futures contracts closed at $15.63 per ounce on March 10, 2015. These contracts trade on COMEX—a division of NYMEX (New York Mercantile Exchange). They tested the lows on December 23, 24, and 26, 2014. It’s the eighth down day in the last ten trading sessions. The average of up days closed 0.43% more than the down days over the same period.

Silver hits year low

COMEX silver futures closed at the day’s low—down by 0.91% at the close of trade on March 10, 2015. The traded volume was at 32,569 contracts. It increased by 8,163 contracts from the previous day.

Silver prices have been in a deep downward trend since April 2011. A stronger dollar, improved US economic outlook, and sluggish demand led to the collateral damage for silver prices.

This trend continued in February. It’s also continuing in March 2015. A strong dollar and US growth negatively impacted silver prices during this period. On March 10, 2015, silver prices trended lower. They hit yearly lows—driven by the same factors. Market sentiments are bearish for precious metals. A massive sell-off is taking place. Investors are pulling out money from gold and silver funds due to the increasing dollar.

As the silver prices decline, it puts pressure on silver ETFs’ margins—like the iShares Silver Trust (SLV) and the ProShares Ultra Silver ETF (AGQ). The prices also impact silver stocks like First Majestic Silver Corp. (AG), Pan American Silver Corp. (PAAS), and Silver Wheaton Corp. (SLW).

Continue to Part 2

Browse this series on Market Realist:

• Part 2 - Silver prices retreat from the key support for the third day