The price of silver has fallen beyond recognition
Trend of spot silver price
The futures market continued to decline after the third consecutive decline of Shanghai and Bank of China. Today, it continued to open low and walk low. On February 24, the price of Shanghai silver in 2006 was still 4500 yuan / kg. Today, the lowest price is 2857 yuan / kg, and the closing price is 2937 yuan / kg.
Silver futures fell to a total loss, comparable to the U.S. stocks. Spot silver prices are following suit.
According to the tracking data of business agency, the average price of spot silver market on March 19 was 2942.67 yuan / kg, which was 4247.33 yuan / kg compared with the average price at the beginning of the month, with a 30.72% drop in the month.
Break through 3000 silver and set a new low in 10 years
As a precious metal with strong industrial properties, silver has recently fallen. As precious metals, the trend of gold and silver prices tends to be obvious, but the recent gains and losses are significantly different.
According to the tracking data of business agency, the average spot gold market price on March 19 was 331.75 yuan / g, which was 370.75 yuan / g compared with the average market price at the beginning of the month, down 10.52% in the month. Lengthen the price trend (as shown in the figure below). At present, precious metal gold is only down the increase since December last year, while silver spot price has fallen to the lowest price since the tracking data on September 6, 2011.
On March 18, the silver commodity index was 35.19, down 0.54 points from yesterday, a record low in the cycle, down 65.76% from the highest point of 102.76 on September 6, 2011. (Note: cycle refers to 2011-09-01 to now)
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Price trend of gold and silver in recent 10 years
How to deal with market panic
List of interest rate cuts by central banks this week (incomplete statistics):
The Federal Reserve cut interest rates to zero on Sunday and launched a massive $700 billion quantitative easing program. The Federal Reserve also cut banks’ emergency loan discount rate by 125 basis points to 0.25% and extended the loan term to 90 days.
Bank of Jordan: cut the main interest rate by 100 basis points (for the second time in recent two weeks) to 2.50% to stimulate the economy.
The Central Bank of Chile cut interest rates by 75 basis points to 1%.
The Egyptian central bank cut the interest rate by 300 basis points, reducing the overnight deposit rate to 9.25%, up from 12.25%.
Poland’s central bank cut the benchmark interest rate by 50 basis points to 1%; cut the bank’s direct financing rate by 100 basis points to 1.5%; and cut the rediscount rate to 1.05%, previously 1.75%.
The Bank of Iceland cut its benchmark interest rate by 50 basis points to 1.75%.
Brazil’s central bank: cut the benchmark interest rate by 50 basis points to 3.75%. Previously, analysts expected 4.00%.
Ghana’s central bank cut its benchmark interest rate from 16% to 14.5%.
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Wrong killing in panic?
The outbreak of overseas oil black swan incident was superimposed, and the speculative market plummeted like a virus among various varieties.
Such as US stocks, because of their higher valuation + investment game theory convergence risk, panic resistance is weak, the bubble was plummeted to correct.
In the precious metals category, silver has a strong industrial attribute and a weak hedging attribute, which is obviously impacted by the convergence of panic and speculative effect.
Under the environment of the market’s growing concern about the economic slowdown and the simultaneous downward movement of precious metal prices, on the one hand, we should consider the dynamic changes in the physical demand and supply of precious metal silver; on the other hand, we should also consider the factors of capital, the speculative cost performance of silver in the trading market after the panic and collapse.
On the premise of no systemic risk in the world economy, ye Jianjun, a precious metals analyst at the business club, believes that with the stable market expectation and the disappearance of panic, the investment demand of precious metals will usher in a new climax under the loose monetary policies of various countries.
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