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A slowing economy and reduced industrial demand has hurt the silver price the most this week. It’s “more related to the economy than gold is,” said Bart Melek, BMO Capital Markets global commodity strategist. Silver is functioning much more as an industrial metal rather than a precious metal at the moment.

Increasing trepidation in the markets brought on by the reality of recession has sent precious metals and commodities prices tumbling this week.

The current drops have “nothing specific” to do with gold and silver, said Dave Rinehimer, one of the directors with Citigroup Global Markets. “It’s just renewed weakness in commodity prices on a stronger dollar.”

Worried investors are pulling their money out of both, equities and commodities, which are usually inversely proportional. “Commodity demand is tied to economic growth, and to the extent that the equity markets are signaling continued economic slowdown, that means lower demand for basic commodity materials,” said Richard Feltes, senior Vice President and Director of Commodity Research for MF Global in Chicago. A slowing economy and reduced industrial demand has hurt the silver price the most this week. It’s “more related to the economy than gold is,” said Bart Melek, BMO Capital Markets global commodity strategist. Silver is functioning much more as an industrial metal rather than a precious metal at the moment.

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