While supporters of the new CFTC rule expect it to prevent large firms from taking too large positions in commodities and causing inflated prices, there are those who caution that it will only push commodities investors to markets outside of the United States.
The rise in precious metals investing by our readers and the fact that silver’s investment popularity is now on par with that of gold are both very much in line with the developing trends we are seeing in worldwide gold and silver investing.
Silver Investing News had the opportunity for our own short Q&A session with Dr. Michael Berry, publisher of Morning Notes, who will be speaking at the world-renowned Silver Summit Investment Conference and will host a “no holds barred” Q&A session following his presentation.
The silver market is experiencing strong downward pressure along with most of the commodity markets as traders struggle to find anything positive coming out of the bleak macro economic outlook in the United States and Europe.
Safe haven demand has left the precious metals market and headed over to the US dollar and Treasurys as Eurozone economic woes are expected to further strengthen the greenback. But, the US is itself still embroiled in a financial crisis. How much longer can the greenback remain king?
Silver’s ability to efficiently conduct electrical and thermal energy makes it a key raw material in solar energy applications. Recent reports show that the future of silver demand may be in part tied to the development and growth of the clean tech and renewable energy markets.
The current economic climate in the western hemisphere is reminiscent of the 2008 Crash and the understandable fear that we’re heading into the Great Recession 2.0 has investors seeking safe haven assets. What will happen to silver prices if the current economic crisis spirals into a repeat of 2008?
China has been heralded as the global economic savior who will push worldwide commodities markets higher and higher, but markets guru A. Gary Schilling recently warned that China is on the verge of a “hard landing” that could “prick the global commodity bubble,” sending oil and industrial metals markets like copper and yes, even silver, on a downward spiral.
Silver made moderate gains today, regaining some of the ground lost on Tuesday after the pull back from the $41.37 per ounce high. The price of silver is mostly driven by continuing factors of loose monetary policy and inflationary fears. Concern is mounting in the market that precious metals are over valuated and are set to fall.
Bloomberg reports that Silver will jump as much as 37 percent next year.
Monday, October 24, 2011