Silver May Benefit From US Economic Gains – Deutsche Bank

September 19, 2014

London (Sept 19)  Gold and silver prices fell as long-term U.S. real interest rates rose, and Michael Lewis, strategist at Deutsche Bank, says gold prices were trading relatively cheap to silver. That may have triggered the recent decline in silver prices on a relative basis. However, he notes the gold:silver price ratio was trading at relatively elevated levels. That may not continue. With the notion that real rates are rising, given this week’s Federal Open Market Committee meeting, and the firm’s upbeat outlook for U.S. growth, “we expect that the steady rise in the gold to silver price ratio over the past few years is drawing to a close and that short gold versus long silver is becoming increasingly attractive given the upside to U.S. growth indicators and the S&P 500.”

Source:  KitcoNews

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