Silver Prices Plummet as Interest Rate Hikes Loom

Investors in Korea have been flocking to buy gold and silver as a safe-haven asset, but their prices are now falling sharply. In fact, silver prices have halved from their peak in January this year, down 51.3% from $120 an ounce.

The precious metal frenzy started last year, with investors rushing to buy gold and silver due to rising interest rates and inflation concerns. However, with the US Federal Reserve expected to raise interest rates next year, demand for silver has plummeted.

According to InvestingCom, silver futures closed at $59.31 an ounce on March 30, up 2.11% from the previous trading day. But this is a far cry from its peak in January when it reached over $120 an ounce.

Hong Sung-ki, a researcher at LS Securities, believes that the rebound in silver prices will be difficult for now due to rising real interest rates and weakening ETF investment funds.