‘Black Monday’ Sends Silver Reeling
The financial markets were in free-fall on Monday, as the equity markets suffered their worst one-day loss since the 1987 crash. The economic picture remains grim, despite the emergency move by the Federal Reserve on Sunday, which cut interest rates to a range between zero and 0.25%. Investors remain rattled and the equity markets are bearing the brunt of the panic. Randy Frederick, vice president of trading and derivatives for Charles Schwab, was somber in an assessment of the situation, saying that “we have not experienced an issue like this in the last several decades, where it affects all industries and businesses everywhere in the world.” Frederick added that “a recession is a fairly high probability. The question is when does it start”.
Jittery investors have been gripped by a “dash for cash” attitude, which has left all asset classes vulnerable. Commenting on the market meltdown, Phil Streible, chief market strategist of Blue Line Futures, has noted that “it seems like the only place that anyone found any safe haven in was the bond market, but with yields dipping back down below 0.64%, I think that there’s not much room there on the upside”.
Black Monday did not spare silver, as the metal fell by 12.2 percent. In the month of March, the metal has declined by a staggering 25.0%, as silver’s (partial) safe-haven status has not been enough to save the metal from the ravages of the market melt-down.