Spot silver suffered one of its most severe drops on record early Monday, as bulls who have driven the gray metal up to 31-year records failed to carry it above $48 a troy ounce and were routed in a headlong collapse.
The metal fell 12% in just 11 minutes when the fall was at its most severe. Spot silver saw its informal 2200 GMT open at $47.863/oz before rising to a peak of $48.150/oz around 2205 GMT, then sold off sharply after 2225 GMT to a base of $42.210 before stabilizing.
The move down is the first break in an extraordinary run for silver, which has more than doubled in price over the past six months as investors bet on rising prices from renewed industrial demand and as a cheap safe-haven alternative to gold.
A snapback coming or is this it? And how bad will the aftershocks across the commodity complex be? Will gold give us a shakeout? How about the grains? Energy?