The Federal Reserve voted Wednesday to keep benchmark short-term rates near zero.
In addition to the rates move, the Fed said it would keep buying bonds, targeting $80 billion a month in Treasurys and $40 billion in mortgage-backed securities.
On the economy, the Fed sees GDP tumbling 6.5% in 2020 but bouncing back to a 5% gain in 2021.
Recently, silver has made a significant move – up about 20 percent in the last month – and trading just below USD$18 per ounce at press time. Simultaneously, investment in physical silver, in the form of silver bullion coins and bars, is expected to climb for a third consecutive year,
Meanwhile, silver has far greater industrial applications, so benefited from the improving economic optimism, Flynn said. Further, the metal this spring was widely considered undervalued relative to gold, so likely drew some investment buying in its role as “poor man’s gold,” as it is often called.
This article examines the prospects for silver, which has been overlooked in favour of gold. Due to the economic and monetary consequences of the coronavirus lockdowns and the earlier turning of the credit cycle, there is an increasing likelihood of a severe and sustained downturn that will require far more monetary expansion to deal with, favouring the prospects of both gold and silver returning to their former monetary roles.
To understand the consequences for silver, this article draws…
Silver is mostly flat today following the two-day major upside move. The market environment remains supportive for silver price upside as the U.S. dollar is under pressure, the stock market is optimistic while gold trades close to recent highs.
"The options on goods contracts shall enable small-time jewellers, retailers to come forward and hedge their price risk on the BSE's commodity platform," said Ashishkumar Chauhan, MD and CEO of the BSE.