Silver Seen Climbing Faster Than Gold as Yellen Wakens Bulls

Jon Banking, Economy, Fiscal Policies, Gold, Market Commentary, Precious Metals, Silver

Investors may be better off with silver rather than gold. The Federal Reserve’s pledge to stick to its dovish outlook on U.S. monetary policy has fueled a rally in precious metals and silver usually beats its more valuable peer in a rising market.
After the Fed raised interest rates by a quarter percentage point Wednesday, Chair Janet Yellen said the central bank was willing to tolerate inflation temporarily overshooting its 2 percent goal and intended to keep its policy accommodative for ‘some time.’ UBS Group AG said the gradual pace of tightening means negative rates will deepen, the dollar weaken and gold rise.
‘Silver is substantially undervalued compared to gold and has plenty of space to appreciate both in dollar terms and relative to gold,’ Gregor Gregersen, founder of Singapore-based Silver Bullion Pte, said in an e-mail. ‘Currently the move into silver is a trickle, but it might very well become a flood once the mood of the market at large shifts.’

This post was published at bloomberg