Price hits low on Monday; market expected to remain volatile.
The price of silver dropped to its lowest level since September 2010 yesterday after large sell orders and a slow start to trading in Asia.
The metal hit US$20.84 (£12.73) per troy ounce during early trading yesterday, falling 9% against Friday’s closed market price. The drop was mirrored by the gold price which fell to US$1,383.39 (£914).
According to Reuters the gold price hit a one-month low yesterday after a seven day decline. Both metals rebounded by nearly 3% in the afternoon with silver gaining to US$21.54 (£14.19) per troy ounce.
Reuters described the day as "a roller-coaster session that opened with a gut-wrenching dive in silver to its lowest in two-and-a-half years before an abrupt midday turnaround".
The gold price is down 17% so far this year while silver has lost 25%. It is understood that some investors have been taking money out of precious metals and placing it into equities and the US dollar as economic confidence improves in the US and other markets.