Silver prices rose for a second consecutive session on the back of the Federal Reserve commitment to near zero interest rates through 2014. However, the target inflation rate of 2 percent has caused some to question the strength of silver and gold as an investment hedge.
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.
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.
The drive for silver is split between its role as an industrial metal and as a hedge against inflation has never been more evident as it is today.
Fall is often a time for active trading. This, combined with insecurities over global currencies, is preparing metals traders for a rush to silver.
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.
William Rhind Managing Director of ETF Securities speaks about the current trends of the silver market and the strength of ETF’s despite the correction of silvers price.
The price of silver fell on Wednesday after making modest gains early in the trading week. After last week’s tremendous downfall, the downward pressure on price is being attributed to the improving US dollar, fall of oil prices, as well as momentum plays by speculative investors. Yet not all have soured on the white metal.
With the Federal Reserve’s announcement on Monday, April 27 that interest rates were going to remain low, the price of silver surged up to a high near $50 an ounce, as fears of a coming United States currency inflation were reinforced and investors continue to put funds into silver as an alternative to the much more expensive gold.
Friday, January 27, 2012