Both gold and silver were heavily sold off again last week down from the $1760's and the $33 region earlier this month to approx. $1565 and $28 per ounce respectively.
For interest sake gold is still up 10% so far for the year and silver is on par with it's price at the start of the year. In comparison, shares in Lloyds and Barclays, among others, have lost in excess of 50% in 2011, let alone since their highs years ago.
For now it seems to be clear that the price of gold cannot withstand widespread sell-offs in the market, despite it generally having been considered a safe-haven asset (the upward trend in the price of gold was relatively unchanged even during the turmoil of the early stages of the depression in 2008). That said, recent falls have by no means turned many big players off from piling in at what they suggest are "artificially" low gold prices.
Silver on the other hand is highly susceptible to selling caused by eurozone and global market fears. Excessive consumption of silver over past decades at low prices is said to be likely to cause sharp increases in price in the years to come. Many experts suggest that silver should be worth at least $100 per ounce today given its utility and rarity. That would make its current price a discount of 70%. Even if it only reached $100/ounce in 5 years time that would still constitute an annual return near to 20%.
For interest sake gold is still up 10% so far for the year and silver is on par with it's price at the start of the year. In comparison, shares in Lloyds and Barclays, among others, have lost in excess of 50% in 2011, let alone since their highs years ago.
For now it seems to be clear that the price of gold cannot withstand widespread sell-offs in the market, despite it generally having been considered a safe-haven asset (the upward trend in the price of gold was relatively unchanged even during the turmoil of the early stages of the depression in 2008). That said, recent falls have by no means turned many big players off from piling in at what they suggest are "artificially" low gold prices.
Silver on the other hand is highly susceptible to selling caused by eurozone and global market fears. Excessive consumption of silver over past decades at low prices is said to be likely to cause sharp increases in price in the years to come. Many experts suggest that silver should be worth at least $100 per ounce today given its utility and rarity. That would make its current price a discount of 70%. Even if it only reached $100/ounce in 5 years time that would still constitute an annual return near to 20%.
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