Precious metal ETFs fell hard Wednesday on speculation the Federal Reserve may wait on further monetary stimulus following testimony from Fed chief Ben Bernanke.
“Precious metals had climbed high in 2012 on expectations that central banks in Europe and the U.S. would keep the global financial system cash-flush in an effort to prop up economic growth. Some investors buy gold and silver to shield against the weakness in paper currencies that can accompany loose monetary policy,” The Wall Street Journal reported. “But in testimony to Congress on Wednesday, the Federal Reserve chief didn’t indicate that fresh monetary stimulus was near.”
iShares Silver Trust
Full disclosure: Tom Lydon’s clients own SLV.