Silver takes biggest tumble in five years as investors exit long holds

SILVER prices tumbled to their biggest three-day losses in five years yesterday, with a five per cent slide on the day also dragging down the price of gold.

Silver has now lost 20 per cent, the conventional criteria for a bear market, since it rallied to a record high near $50 (£30.31) an ounce last Thursday.

Spot silver dropped 4.9 per cent to $39.58 an ounce in trading yesterday, having earlier hit a near one-month low at $38.95.

Sentiment among precious metals investors took a hit yesterday after a report said high-profile investor George Soros, who was bullish on gold and a top investor in gold funds, has been selling gold and silver in the past month or so.

Investors remain wary of a market in almost chronic surplus combined with a highly volatile price.