A major factor influencing rising investment demand in precious metals often referenced by analysts is the quantitative easing measures employed by The Federal Reserve in an attempt to bolster the US economy. One of the effects of the Fed’s paper-printing policies is the debasing of the US dollar, which makes gold and silver attractive safe-haven buys. A reversal in that policy could have a dire impact on silver prices.
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?
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 [...]
By Melissa Pistilli-Exclusive to Silver Investing News Gold is riding high on dollar weakness, increased risk appetite and inflation fears bringing its price per ounce above $1,100. Silver has come along for the ride, but hasn’t managed to hold a break over the $18 level. Concerns over sluggish industrial demand for base metals in general [...]
By Melissa Pistilli-Exclusive to Silver Investing News On Monday, gold‘s losses and the rebound in equities halted silver’s four-day rally. A stronger U.S. stock market drew investors out of precious metals into the equities markets as the appetite for risk improved. “Safe-haven flows seem to have ebbed out of the gold market,” said Jon Nadler, [...]
Tuesday, January 11, 2011