Silver dropped by 11.8% in 2015. Gold prices also retreated, by a whopping 10.8% from the year prior. Though the plunging prices left precious metal lovers in dismay, they certainly raised demand in the market. US Mint silver coin sales hit a record high in 2015. Silver American Eagle coins hit 47 million ounces, while gold coin sales rose 53% and touched 801,500 ounces.
Falling prices lure precious metal fans, resulting in higher physical demand. Silver futures for March 2016 expiry were trading below their 20- and 100-day moving average prices. The fall below these critical marks could suggest a possible bounceback in price or a short-term downward trend with good chances of a bounceback. Though precious metals fall for various reasons, the primary factor is the US dollar. When the US dollar flexes its muscles, dollar-denominated commodities and metals go weak at the knees.