Silver: Rough Week or Finally a Bottom?

 | Jul 14, 2017 | 11:00 AM EDT
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Silver has had a difficult summer so far. The commodity currency that runs second to gold has been under stress since mid-April.

Last week saw investors running for the exits as silver's dollar price dropped below $15 per ounce. The dramatic move lower was blamed on a "fat finger" or flash crash but the metal remained under pressure during the early part of this week, casting doubt on the reason for the downswing.

The last several days have seen silver strengthen and recoup some of its losses back to above the $15.60 level. This has given many that follow the metal hope that the worst is over. But is it? Gold also seems to have consolidated this week, finding a bid just above the $1,200 mark.

Given that the summer months tend to have less active trading, this latest bottom may prove to be just what the doctor ordered as markets take a final breather before what is shaping up to be an active second half of the year.

With looming political battles over healthcare, deficit limits, tax policy and the federal budget coupled with slowing economic conditions and Fed rate hikes, the second half of 2017 could turn out to be an exciting time for holders of precious metals.

As a quick glance at a chart of silver, above, will confirm, odds are that this past week has given us a bottom rather than a top in the metal.

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