This website collects cookies to deliver better user experience. Cookie Policy
Accept
Sign In
The Wall Street Publication
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Reading: Rising Bond Yields, Falling Industrial Demand Behind Slumping Silver Prices
Share
The Wall Street PublicationThe Wall Street Publication
Font ResizerAa
Search
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 The Wall Street Publication. All Rights Reserved.
The Wall Street Publication > Blog > Markets > Rising Bond Yields, Falling Industrial Demand Behind Slumping Silver Prices
Markets

Rising Bond Yields, Falling Industrial Demand Behind Slumping Silver Prices

Editorial Board Published October 6, 2021
Share
Rising Bond Yields, Falling Industrial Demand Behind Slumping Silver Prices
SHARE

Prices just wrapped up their worst four-month stretch since November 2014, dragged down by expectations for higher interest rates and a slowdown in manufacturing activity. Front-month silver futures have fallen more than 21% in that period to around $22 a troy ounce. 

Silver is both a precious metal and an industrial commodity, used in products as diverse as jewelry, solar panels and semiconductors. Now, the impending rollback of pandemic monetary-stimulus measures is hurting precious-metals prices at the same time that global production bottlenecks, energy shortages and manufacturing slowdowns reduce industrial demand. 

Prices, which slipped 0.2% Tuesday to $22.58, stand near their lowest levels in a year, making silver one of the worst-performing assets for 2021 in a group tracked by The Wall Street Journal. Shares of miners such as First Majestic Silver Corp. AG -0.91% and Hecla Mining Co. HL -2.01% fell more than 25% last quarter, while the Global X Silver Miners ETF SIL -0.06% lost around 18%. 

“Right now, all precious metals are reacting to less-than-anticipated industrial demand and the combination of a shift in the Fed policy of tapering and a stronger dollar; all of those things have made a cocktail for negative metals,” said James Steel, chief precious-metals analyst at HSBC. 

Silver and gold tend to slide when investors expect economic growth and inflation, increasing the appeal of riskier assets such as stocks, or those that pay income, such as bonds. Declines accelerated in September after the Federal Reserve signaled it was ready to start paring back asset purchasing in November and could raise interest rates next year amid risks of a lengthier-than-expected jump in inflation. Gold, which fell 0.9% last quarter, is among the year’s worst-performing assets.

Recent gains in bond yields have fueled a rise in the U.S. dollar that is also weighing on metals including silver, by making commodities priced in dollars more expensive for overseas buyers. 

WSJ Dollar Index, which tracks the currency against a basket of 16 others, is trading near its highest levels in a year.

Hedge funds and other speculative investors have grown more cautious on silver lately, cutting net bets on higher silver prices to their lowest level since June 2019, according to Commodity Futures Trading Commission data through the week of Sept. 21.

Though U.S. stocks have slipped lately, many expect rebounding growth to support major indexes and view the recent pullback as natural after a year in which the S&P 500 set dozens of records.  

“In growth-friendly regimes, it’s going to be difficult for silver and gold,” said Hakan Kaya, commodity portfolio manager at Neuberger Berman, who is buying the precious-metal dip. 

The recent selloff marks a reversal from early this year, when day traders piled into the silver market and helped lift prices as high as $29.40. Silver posted its biggest one-day advance in more than a decade earlier this year but prices have retreated roughly 25% since then. 

One factor buoying silver earlier in the year: expectations that increased infrastructure spending would help spur a rapid increase in the use of renewable-energy sources, said Suki Cooper, a precious-metals analyst at Standard Chartered. Silver is used in solar panels.

Silver prices will recover ground if industrial trends improve and the chip shortage eases, making the metal’s outlook healthier in the long term, said Ms. Cooper. 

“There was a lot of early buying in silver in anticipation of that demand materializing, so given that these developments are going to take years to unfold, there’s naturally going to be a dip in terms of investor interest because they came into the market early,” Ms. Cooper said.

Write to Hardika Singh at [email protected]

more WSJ Metals coverage

Copyright ©2021 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

TAGGED:MarketsPAIDWall Street Publication
Share This Article
Twitter Email Copy Link Print
Previous Article Google Rolls Out Emission-Curbing Tools for Nest Thermostat Google Rolls Out Emission-Curbing Tools for Nest Thermostat
Next Article Is This the Real Turning Point for Aviation Stocks? Is This the Real Turning Point for Aviation Stocks?

Editor's Pick

Nicki Minaj Calls Cardi B’s Daughter ‘Ugly’; Cardi Shoots Again That Nicki’s Son Is Nonverbal Because of Drug Use Throughout Being pregnant

Nicki Minaj Calls Cardi B’s Daughter ‘Ugly’; Cardi Shoots Again That Nicki’s Son Is Nonverbal Because of Drug Use Throughout Being pregnant

Studying Time: 3 minutes The Nicki Minaj vs. Cardi B beef has been occurring for years. Like, mainly for so…

By Editorial Board 4 Min Read
China opens world’s reported largest span bridge over Beipan River valley to visitors
China opens world’s reported largest span bridge over Beipan River valley to visitors

The Huajiang Grand Canyon Bridge opened to visitors for the primary time…

3 Min Read
Bruce Bochy out as Rangers supervisor after 3-year stint and the staff’s solely World Collection title
Bruce Bochy out as Rangers supervisor after 3-year stint and the staff’s solely World Collection title

By STEPHEN HAWKINS ARLINGTON, Texas — Bruce Bochy is not going to…

4 Min Read

Oponion

Russia’s Use of Iranian Drones Creates New Dangers

Russia’s Use of Iranian Drones Creates New Dangers

Russia has inflicted serious damage on Ukrainian forces with recently…

September 17, 2022

Nationwide Geographic’s No Style Like Residence With Antoni Poroski holds crimson carpet celebration in NYC

MANHATTAN, New York — A brand…

February 19, 2025

FTC Sues to Block Microsoft’s Acquisition of Activision Blizzard

TechAntitrust enforcer seeks to stop $75…

December 8, 2022

Wisconsin girl discovered responsible in U.Ok. homicide plot 6 years after making an attempt to shoot man at point-blank vary

An American girl on Tuesday was…

August 12, 2025

Tech Stocks Poised to Slip as Bond Yields Climb

Stock futures edged down, with technology…

April 11, 2022

You Might Also Like

Gold FOMO may push steel to ,000
Markets

Gold FOMO may push steel to $4,000

Pacer ETFs President Sean O’Hara discusses the advantages of ETFs and lays out his favourite investments on ‘The Claman Countdown.’…

3 Min Read
OpenAI turns into world’s most respected non-public firm with 0B valuation: report
Markets

OpenAI turns into world’s most respected non-public firm with $500B valuation: report

OpenAI CFO Sarah Friar joins Mornings with Maria to debate main investments from NVIDIA, SoftBank, and others, the U.S.–China AI…

5 Min Read
Why are mortgage charges rising regardless of a price lower from the Fed?
Markets

Why are mortgage charges rising regardless of a price lower from the Fed?

Managing Director at Madison Ventures Plus Mitch Roschelle joins ‘Varney & Co.’ to interrupt down the New York exodus to…

4 Min Read
ETFs are flush with new cash. Why billions extra are flowing their method
Markets

ETFs are flush with new cash. Why billions extra are flowing their method

Pacer ETFs President Sean O’Hara discusses the advantages of ETFs and lays out his favourite investments on ‘The Claman Countdown.’…

8 Min Read
The Wall Street Publication

About Us

The Wall Street Publication, a distinguished part of the Enspirers News Group, stands as a beacon of excellence in journalism. Committed to delivering unfiltered global news, we pride ourselves on our trusted coverage of Politics, Business, Technology, and more.

Company

  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement

Contact

  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability

Term of Use

  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices

© 2024 The Wall Street Publication. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?