Last week, I said that 90 lira was support for gram silver, and that if it broke below $60 per ounce, there was a risk of sliding as far as $54. The reason for the decline is simple: interest rates. The U.S. Federal Reserve raised rates in September, and the minutes released yesterday showed it was open to another hike. When interest rates rise, people want to put their money in interest-bearing investments, while silver pays no interest. As a result, demand for silver falls in the short term, bringing its price down. THIS IS NOT INVESTMENT ADVICE.

Last week, I said that 90 lira was support for gram silver, and that if it broke below $60 per ounce, there was a risk of sliding as far as $54.

The reason for the decline is simple: interest rates. The U.S. Federal Reserve raised rates in September, and the minutes released yesterday showed it was open to another hike. When interest rates rise, people want to put their money in interest-bearing investments, while silver pays no interest. As a result, demand for silver falls in the short term, bringing its price down.

THIS IS NOT INVESTMENT ADVICE.