Silver has been trading above $25 an ounce on Tuesday, after falling 2.5% in the previous two sessions, supported by prospects of further US stimulus despite uncertainty over the size and timing of the new package. Meanwhile, investors also await Fed’s monetary policy decision on Wednesday and expect it to reinforce its commitment to a highly accommodative monetary policy and to clarify it won’t taper anytime soon.
Silver futures and options contracts are used by mining companies, fabricators of finished products, and users of silver-content industrial materials to manage their price risk. As a precious metal, silver also plays a role in investment portfolios. The largest industrial users of silver are the photographic, jewelry, and electronic industries. The biggest producers of silver are: Mexico, Peru and China followed by Australia, Chile, Bolivia, United States, Poland and Russia.