As a result of persisting anxiety in European capital markets, silver prices fell on September 8th, 2011. This was noticeable after a positive US economic data and a stronger greenback that marked dropping in silver prices a bit extravagantly. According to the report, silver prices dropped $0.85, down to $31.66 per ounce, a remarkable decline of 2.61%.

Mario Draghi, the new ECB (European Central Bank) president, attempted to cut interest rates by a quarter of a %, which the former president previously hiked. The ECB also lowered the reverse ratio for European banks to relieve liquidity. Despite several attempts, the final announcement astonished everybody because these provisions had a small influence. The S&P 500 reduced 2.11%, and at the DIA, NASDAQ, both silver and gold prices fell.

After watching the negative reaction to the announcement, Mario Draghi remarked that the ECB would not increase bond purchases to stabilise the sovereign debt crisis. This was one of the crucial announcements by European leaders after the meeting in Brussels to deal with the crisis.

On the above announcement, Nicholas Sarkozy, the French president, said: “Never has the risk of Europe exploding been so big”. “The diagnosis is that the euro, which should inspire confidence, is not inspiring this confidence. If there is no deal on Friday, there will be no second chance.”

Because of the ongoing crisis in Europe and the latest announcement, many investors are not interested in putting money in the metal. The instability has reduced silver prices as well. It has duly affected the commodity market.