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.
Kootenay Gold Inc. (CVE:KTN) announced assay results from the additional 6 holes of its ongoing 25,000 meter multi-phase drilling program on its Promontorio Silver project in Sonora, Mexico.
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.
The biggest story in the silver market is not the price gains, but rather a condition of backwardation in the silver futures market. Ted Butler discusses the significance along with silver price manipulation.
Commodity Online reports that high gold prices are motivating investors in India to turn to silver purchases.
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.
Reuters reports that on Wednesday, Gold prices surrendered gains to turn lower and Silver retreated from its earlier 5 percent climb.
The price of silver has advanced nearly $10 an ounce in the last three months, pushing up share prices for several silver mining stocks.
Most have chosen gold and U.S. Treasury Bills to fasten onto, but if the truth be known, silver prices have appreciated more in the past twelve months than those for gold, much to the chagrin of hucksters on the national airwaves.
: Although the current 10-year bull market in precious metals has taken gold nearly 50 percent above its previous historical peak of $875 set in 1980, silver is still 60 percent below its all-time record high of $50 an ounce. This is proof positive, say silver bugs, that the white metal has much farther to go.
Thursday, September 29, 2011