Gold and silver prices have seen some of their sharpest swings in decades over the past week, with silver recording its steepest fall since 1980.
After reaching recent highs, prices dropped sharply as investors took profits and markets reacted to expectations of higher interest rates and a stronger US dollar, which typically reduces demand for precious metals.
Silver fell more dramatically than gold, due to heavier trading volumes and its common use in industry, which makesit more sensitive to sudden changes in demand.
Geologist and precious metals expert Dr David Twist said the recent volatility was driven by a combination of market speculation and shifting economic expectations.
Dr David Twist
Dr Twist said, “the recent volatility should not come as a surprise to long-term investors as precious metals are assets that experience regular corrections over time.”
He continued: “People should not be investing in gold or silver unless they understand it is a long-term investment as short-term price movements are be misleading.”
Mr Twist said while prices can fluctuate sharply in the short term, the long-term trend for precious metals has historically been upwards, and he warned against reacting to sudden market swings.
Prices have since rebounded slightly, but analysts at the London Bullion Market Association (LBMA) said “markets remain unsettled and prone to further volatility.”
The turbulence is being felt particularly in London’s historic jewellery district of Hatton Garden.
Jewellers said uncertainty around gold and silver prices is influencing customer behaviour, with some buyers and sellers choosing to wait before making decisions.
Sham Hassan, Owner of SH Jewellers and Watches
Sham Hassan, the owner of Sh Jewellers and Watches, buys and sells second-hand watches and jewellery in the Hatton Garden arcade.
Mr Hassan said “fluctuating precious metal prices directly affect our valuations and our customer confidence.”
Hatton Garden is home to 70-90 jewellery shops, and roughly 300 business which rely on gold and silver prices to valuate luxury items and second-hand pieces accurately.
For now, traders and customers alike are watching closely to see whether the market stabilises or remains volatile in the weeks ahead.
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HeadlineHatton Garden feels gold and silver price swings
Short HeadlineHatton Garden feels gold and silver prices.
StandfirstGold and silver prices have experienced significant fluctuations this week, with silver falling the most since 1980.
Gold and silver prices have seen some of their sharpest swings in decades over the past week, with silver recording its steepest fall since 1980.
After reaching recent highs, prices dropped sharply as investors took profits and markets reacted to expectations of higher interest rates and a stronger US dollar, which typically reduces demand for precious metals.
Silver fell more dramatically than gold, due to heavier trading volumes and its common use in industry, which makesit more sensitive to sudden changes in demand.
Geologist and precious metals expert Dr David Twist said the recent volatility was driven by a combination of market speculation and shifting economic expectations.
Dr David Twist
Dr Twist said, “the recent volatility should not come as a surprise to long-term investors as precious metals are assets that experience regular corrections over time.”
He continued: “People should not be investing in gold or silver unless they understand it is a long-term investment as short-term price movements are be misleading.”
Mr Twist said while prices can fluctuate sharply in the short term, the long-term trend for precious metals has historically been upwards, and he warned against reacting to sudden market swings.
Prices have since rebounded slightly, but analysts at the London Bullion Market Association (LBMA) said “markets remain unsettled and prone to further volatility.”
The turbulence is being felt particularly in London’s historic jewellery district of Hatton Garden.
Jewellers said uncertainty around gold and silver prices is influencing customer behaviour, with some buyers and sellers choosing to wait before making decisions.
Sham Hassan, Owner of SH Jewellers and Watches
Sham Hassan, the owner of Sh Jewellers and Watches, buys and sells second-hand watches and jewellery in the Hatton Garden arcade.
Mr Hassan said “fluctuating precious metal prices directly affect our valuations and our customer confidence.”
Hatton Garden is home to 70-90 jewellery shops, and roughly 300 business which rely on gold and silver prices to valuate luxury items and second-hand pieces accurately.
For now, traders and customers alike are watching closely to see whether the market stabilises or remains volatile in the weeks ahead.
