Silver price, which had rebounded for two days, plunges 13% again

Korea Economic Daily

Summary

It said the spot price of silver, which had rebounded over the past two days, plunged 17% on the Singapore Exchange to $76.97 per ounce.
It said the price of silver futures also fell more than 8% on COMEX, returning the silver market to last weekend’s level.
It said Bloomberg analyzed that the recent silver market has shown even greater volatility than cryptocurrencies, as it is based more on speculative flows, leveraged positioning, and options trading than on physical demand.

After plunging last weekend, silver prices—which had rebounded over the past two days—fell 17%. Silver has returned to last weekend’s level.

The spot price of silver on May 5 on the Singapore Exchange slumped 17% to as low as $76.97 per ounce (about 112,838 won). Silver futures are also tumbling more than 8% on COMEX.

Bloomberg said the renewed plunge in silver prices appears to be due to speculative players taking profits on the gains from the past two days.

Recently, the silver market has been even more volatile than cryptocurrencies. That is because it is driven more by speculative flows, leveraged positioning and options trading than by physical demand.

By contrast, gold prices edged down only slightly. On the Singapore Exchange, spot gold is trading at $4,887 per ounce (about 7,165,808 won), down about 1%.

Park Subin, Hankyung.com reporter waterbean@hankyung.com