The worsening European crisis is generating negative sentiment on worldwide financial markets. Commodities are no exception. The inability of Greece to initiate government formation has caused silver and gold prices to decline, as the US dollar rallies.
Although there are some positive numbers indicating reasonable demand for Spanish and Italian debt, declining European industrial figures are only adding fuel to the fire. Greece’s June elections loom large, leading many to speculate that the pro-austerity government may be tossed out, along with the beleaguered Euro. The succession of Greece from the union is still a potential outcome.
Meanwhile, China has lowered its reserve requirements. Although widely viewed as an attempt at monetary easing, bullish sentiment has not followed the likelihood for potential increased cash flow to Chinese markets.
On the investment side, COMEX silver has experienced five weeks of shortening sales and ETF liquidations, driving large price drops. Now could be a great time to invest in the white metal.
http://silverinvestingnews.com/12175/silver-declines-20s-dollar-rallies-price-investing-market-china-untted-states.html
