Thursday, 12 February 2015

Silver’s $645-million one-day wipeout flashes warning

Originally posted on Financial Post:

Silver ain’t for the faint of heart.

The metal’s price swings have rattled investors so much that even a 10 percent rally last month wasn’t enough to boost purchases of exchange-traded funds backed by silver.

While the appeal of precious metals got a boost from stimulus measures in Europe and Asia aimed at bolstering stagnant economies, the rise in value also brought a surge in volatility. A week after nearing a bull market, prices on Jan. 29 fell the most since 2013, wiping $645 million in one day from the value of global funds linked to silver.

“We don’t ever invest in silver since it’s just so volatile,” James Shelton, who helps oversee $2.2 billion as chief investment officer of Kanaly Trust Co. in Houston, said in a telephone interview on Jan. 28. “If we feel we need to invest in precious metals, it will probably be gold.”

The volatility…

View original 591 more words

No comments:

Post a Comment