By Michelle Smith — Exclusive to Silver Investing News
The Federal Reserve hit the silver market again using the same weapon: failure to announce further quantitative easing. The Fed not only deprived the markets of news of new liquidity, but also used language that suggested its outlook for the US economy is growing slightly more positive. On top of these actions, the Fed described US inflation as subdued.The FOMC meeting, which was translated by the markets as positive for the US economy, was followed by a strong dollar and soaring stock market. The pressure on the silver market was overwhelming and support gave way. The market saw a sharp sell-off on Wednesday, and May silver contracts on the COMEX fell to their lowest level since January. Thursday's weaker dollar allowed silver to put up a fight for the bulls, but the bears were likely pleased by indications of positive US manufacturing data, which is just one factor that supports claims of an improving US economy. It was also another strong day for the equities markets, which have been siphoning cash from precious metals this week, and likely continued to do so today. The close Following Tuesday's sell-off, the New York spot price closed at $32.15. Today the metal managed to make some gains, settling for the day at $32.54. May silver on the COMEX has not fared as well. During US trading, it was unable to escape Wednesday's trading range. At 5:30 pm EST the price was $32.51. Silver mining stocks showed mixed performance today, with many showing gains and a substantial number in the red. Company news McEwen Mining (NYSE: MUX,TSX:MAQ) announced a new silver discovery at the El Gallo Complex in Mexico. The company said the new discovery returned 629.4 g/t silver over 6.1 meters and its Palmarito deposit returned 240.7 g/t silver over 8.6 meters. Both areas have mineralization that starts from the surface. Junior company news Great Panther Silver (TSXV: GPR,AMEX:GPL) reported a 37 percent increase in revenues for 2011 when compared to 2010. The company's revenues were reportedly $57.8 million, with gross profit up 64 percent to $26.9 million. Robert Archer, President and CEO, said the increase in profitablity and cash flow has enabled the company to step up investment in its properties and in exploration to drive growth in 2012 and beyond.