Silver sank after briefly breaking below $68 an ounce amid a historic rally driven by speculative trading and a persistent supply-and-demand mismatch. Increased central bank purchases, inflows into exchange-traded funds, and three consecutive rate cuts by the Federal Reserve have made precious metals hot in recent months. The value of China’s only pure-play silver fund dropped by its daily maximum of 10%, ending a wild bull run that led the fund’s manager to issue rare warnings. The sudden decline in the UBS SDIC Silver Futures Fund LOF follows weeks of gains driven by increasing global interest in precious metals, ... (full story)