A quantitative easing-inspired rally has come to an end, as bears once again take control of the silver price which is undergoing its first decline in around four sessions.
Some might be hoping that the drop in price will mean that production will fall back as a result, and one silver miner seems to agree. Pan American Silver’s quarterly report indicates that miners will look to mothball some of their less cost-effective sites. This would at least provide some source of upward pressure for the metal.
However, we are still looking at a continuation of the ongoing downtrend, unless something major changes. I suspect that tinkering with production levels won’t provide that upward pressure.
For now, the immediate target remains the late June lows around $18.60, with $18 just below it.