Decline in Precious Metals Drags Silver to 13-Year Low

Silver, the Cinderella of the precious metals markets, fell today to a 13-year low in early London trading, dragged down by a decline in other precious metals.

Silver fell 6 cents to $4.62 an ounce, its lowest since September, 1977, and off from Tuesday’s close of $4.68.

Dealers said the drop was caused largely by gold, which weakened with the latest surge in oil prices.

Gold opened in London at $391.55 an ounce, off from the previous close of $396.15. Gold has recently tracked oil prices but fell despite oil’s sharp rise on Tuesday.

Platinum, also losing its shine, was about $5 an ounce lower at $444.50 an ounce.

“Gold is in the driving seat but silver is not very attractive to investors anyway at present,” said an analyst with a large bullion dealing company in London. “Silver has been fairly dead in the water . . . it is too industrial a metal,” he said.