Our silver price news today looks ahead at another volatile week for the white metal as global precious metal sentiment remains guarded.
In early-morning trading Monday, spot silver was trading down 1.5% at $21.88.
Silver traders are closely watching the Wednesday outcome of the Federal Open Market Committee's (FOMC) two-day meeting to see if the U.S. Federal Reserve finally follows through on plans to start weaning the U.S. economy off five years of quantitative easing (QE).
Why Investors Are Hoarding Silver
With the U.S. Federal Reserve failing to take monetary action a few weeks ago, silver prices saw an opportunity to deflate, but instead have held steady around $27 an ounce.
Investors' silver holdings are approaching record highs as speculators exit the precious metal and exchange-traded products with silver add to positions. In the last three months, these products' holdings have grown to a $16.2 billion value, reported Bloomberg News.
But they're poised to get even higher.
Analysts have forecast that silver will average $33.02 an ounce in the fourth quarter-an 18% rise from current prices.
Since last week silver has been increasing and closed up 0.35% to $28.00 on Friday.
So why are investors bullish on silver? There are a few reasons.
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