While the rise in interest rates came as no surprise to traders and investors, the resulting drop in precious metal prices has been significant. Because gold prices hit a minor surge in the 24 hours previous to the FOMC announcement, the subsequent drop in spot price appeared even more dramatic.
Hawkish policy makers voted unanimously to raise interest rates from the previous 0.25-0.50% to 0.50-0.75%- the first rate hike in over a year.
While December’s interest rate increase came as expected, the market was not prepared for the FOMC announcement claiming 2-3 more interest rate hikes will occur in 2017.
Gold has already dropped below $1,128 this morning, down nearly $17 since the market opened. Silver, platinum, and palladium have followed suit each down $0.78, $18.70, and $5.05, respectively.
Forecasts anticipate a volatile market in the days to come as traders attempt to decide how to proceed in this uncertain market.
Take advantage of the dip in precious metals prices by picking up the SilverTowne 2016 Buffalo 1 oz Silver Round from Provident Metals. The classic American Buffalo design makes an efficient and affordable way to stack your silver.
I buy silver from you all and your sister company Elemetal. I sell a LOT of silver at coin shows throughout Virginia and we always welcome a dip in silver prices so we can replenish exhausted stock.
Its an opportunity for buyers to buy. The only thing I will add to that is, if over the next four years the US economy in general becomes more healthy, it may take some time for silver to rebound to the $20.00+ level it once was.
With other countries in a shaky situation, the fall back is always precious metals. In the end, when paper certs, electronic numbers and paper money may become worthless, precious metals is always a smart investment for most people.
Definitely a buyer’s paradise today. I just saw silver slip under $16. Replenish today, and hope for a seller’s economy in the future. 🙂
Agreed. Wall Street is speculating heavily that once implemented, Trumpanomics will usher in a tide of debt that will raise all their boats. If/when Trump is inaugurated and he remains true to his vision as relayed on the campaign trail then that would be a good bet. Should that be the case I predict gold to drop, perhaps to $1,000.00 oz., perhaps more. Globally we would need to remain stable for that to happen, but it is entirely possible. Prepare for the long winter as PM investors, but use this as yet another buying opportunity.
Well said!