(CRUX) Silver prices just reached a new six-year low… and there may be more losses ahead.
Since reaching a peak of more than $45 per ounce in early 2011, silver has been in a long bear market. This morning (Tuesday), silver prices fell to around $15 per ounce… a decline of nearly 70%. You can see this long, slow decline in a five-year chart of the iShares Silver Trust (SLV), an exchange-traded fund that tracks the intraday price of silver…
What’s important about today’s move is that silver prices had appeared to “bottom” around the November 2014 low. You can see this represented in the black line at the bottom of the one-year chart below:
Now that prices have gone below the November low, it means the downtrend in silver has resumed… and there’s no telling where prices will settle.
The next stop could be as low as $12.50/oz. (about 10% below today’s level)… Or maybe even lower. The point is, the bear market in silver is still intact… and there could be more pain ahead. Traders and investors should be cautious.