Fall is often a time for active trading. This, combined with insecurities over global currencies, is preparing metals traders for a rush to silver.
Analysts say that silver is continuing to attract investor attention away from gold, with the gold-to-silver ratio dropping to levels that have not been seen since 1983. But as investors continue to put funds into the precious metal, concerns are surfacing that there may not be enough of the physical silver to go around.
Silver ETFs have widened the playing field for many previously locked-out investors. On the flip side, this investment innovation may pose real danger: quick and dirty liquidation of silver holdings leading to a flood of physical silver onto an already oversupplied market experiencing declining levels of demand.
As silver prices rise along with gold and investment inflows to silver ETFs increase, could the sometimes precious, sometimes industrial metal’s recent rally be merely a momentum play? Is the silver market experiencing a bubble of its own?
While investment demand will continue to be a driving factor in a healthy silver market, increasing industrial demand is also playing a strong role, according to the Silver Institute’s World Silver Survey 2010, produced annually by research firm GFMS Ltd.
Silver has taken off since last Thursday as growing concerns over Euro Zone debt pushed risk adverse investors away from paper currencies and into the precious metals.
When ETFs were first introduced to the marketplace a decade ago, they opened up a whole new world of investment opportunities. Now New York-based Global X Funds has extended those opportunities even further. Tuesday, Global X launched the world’s first silver miner exchange-traded fund, Global X Silver Miners ETF (SIL).
By Melissa Pistilli-Exclusive to Silver Investing News Long-Term Outlook for Silver Many analysts expect strong industrial demand for silver over the medium- to long-term to provide price support going forward. Strong investment demand can also be seen in record combined ETF silver holdings, which reached 472.7 million ounces Friday, up 0.2 per cent from the [...]
By Melissa Pistilli-Exclusive to Silver Investing News Silver and gold prices rose slightly in early trading Monday, but those gains were quickly erased as a rebounding dollar forced gold down below the psychological support level of $1,100 an ounce to close at $1,092.30 in New York, and silver dropped below the crucial $17.00 level to [...]
By Melissa Pistilli-Exclusive to Silver Investing News Precious metals prices suffered a slight setback Friday on news that two Dubai state-owned firms have had to delay billions of dollars in debt payments, which sent equities and commodities markets reeling. Investors sold off silver and gold to cover their losses. Silver hit a two-week low of [...]
Thursday, July 21, 2011