As of 2:30 p.m. EST, Silver prices (for December delivery) traded up +$0.101 (+0.55%) higher to $18.590, with today’s trading range between $18.470 and $19.035. The 52-week range for the contract sits at $13.780 – $21.225. Prices throughout this report are measured in U.S. dollars per troy ounce.
Markets around the world were quiet all week as they awaited Federal Reserve (Fed.) Chair Janet Yellen to make a speech at Jackson Hole, Wyoming today.
She stated that the case for a rate increase has improved. It is important to remember that what she says, compared to the realities of the strength of the U.S. economy are not always the same thing. The economy did show signs of weakness in the first half of 2016.
Even if the Fed implements only a gradual schedule of increases, that could still kill the economy or, at the very least, put it on life-support. This is because even a gradual path will be an acceleration from the lack of increases what-so-ever in the past few years (that enabled the market to hit record highs).
Expecting the markets to continue to rise even higher under the premise that the economy is doing well enough to justify rate increases, while markets rose on near-zero rates, is like saying that a boat should crash into more icebergs because it showed no signs of sinking after it hit the first one.
The stock markets are very fragile and