Silver dropped 4 percent on Wednesday, adding further losses onto an unbelievably tough year for silver. While gold has fallen over 25 percent, silver has lost nearly 40 percent of its value.
Traders blame the fact that the inflation investors expected the Federal Reserve to create has simply not materialized. Now, with the Fed talking openly about tapering, a major reason to own these metals has been lost.
"There should be a bounce from here, but micro, macro, and momentum are still to the downside," Jeff Kilburg of KKM Financial wrote to CNBC.com. "The Fed has seen some decent data this week to support a tapering campaign earlier rather than later."
Rich Ilczyszyn believes that silver has more room to drop. "Hindsight is 20-20, but if you look back to when silver was $50, that was clearly a bubble," he said.
But like any good trader, he would get in at the right price.
"I'm looking to get long at $16 or so," Ilczyszyn said.