Silver Investing News readers are intrigued to down right passionate when it comes to the topic of silver price manipulation. In a recent survey, we asked the question, “Do you believe the silver market is rigged?” to which an eye-popping 66 percent responded, “Yes!”
While silver prices made moderate gains on the day, uncertainty about the global economy continues to erode investors risk appetite. Some analysts have even called into question silver’s role as ‘poor man’s gold’ as a hedge against inflation.
2011 has been eventful for silver, with massive investor demand, a climb to near-historical highs followed by a sudden drop, and a new trading range.
Silver’s price slipped on the day, but a looming economic slowdown may support the metal. Silver Investing News spoke with William Rhind Managing Director of ETF Securities, about the recent market volatility and the effect on the price of silver.
For the third day in a row silver took a plunge while margin rates increased, driving new investors away, though analysts are uncertain whether this is signaling a lasting drop in value or merely a minor correction in prices.
Bloomberg reported that requirements for margins to trade silver were raised by the CME Group Inc.’s Comex unit once again.
Precious metals have enjoyed a spectacular rise today after the Federal Reserve signaled that interest rates will stay low for an extended period of time, no changes to policies or forecasts and telegraphed the end of its bond-buying program.
Silver prices rose today as uneasiness over the US dollar and tensions in Egypt casts clouds over the market. Demand for the metal remains high, and bullion dealers are continuing to struggle to fulfill orders for bars and coins.
Kitco reports that Silver hit its highest level in 30 years Monday.
Bloomberg reports that Silver will jump as much as 37 percent next year.
Thursday, October 27, 2011