Last week, silver tumbled to its lowest levels all year long, bottoming out at $15.33 an ounce on Wednesday, Mar. 11. A strong dollar is mostly to blame for the pressure commodities have been feeling the last few weeks. On top of that, employment in the U.S. is looking up.
According to Invezz:
On Friday (Mar. 13), the precious metal tumbled over two percent after the release of the employment situation report for February from the US Bureau of Labor Statistics. The Washington-based agency said that nonfarm payrolls rose by 295,000 in February, ahead of the forecasts for 245,000 reported by IG, while the unemployment rate fell from 5.7 percent to 5.5 percent.
Both the strong dollar and dropping unemployment rates indicate to market analysts that the economy is improving, which makes a stronger case that the Fed may increase interest rates sooner than predicted.
Meanwhile, demand for silver, industrially and financially, has never been higher. Sales of American Eagle silver coins are particularly impressive. As SilverSeek reports:
When the world finally loses faith in the Fiat Monetary System and the U.S. Dollar is devalued, there will be a great deal more demand for silver…While GOLD is known as the King of monetary metals, SILVER will win the crown as the best performing monetary asset in the future.
For silver investors who are positioned to buy, there’s hardly a better time than right now.