Silver Contracts Coming to Shanghai Futures Exchange
Chinese investors will soon have direct domestic access to silver futures. Could this development be a game changer?
Chinese investors will soon have direct domestic access to silver futures. Could this development be a game changer?
Silver was in surplus in 2011 and will be in surplus again this year, leaving investors to play a critical role in the market.
Bernanke's testimony before Congress had devastating effects on silver, which had just reached a five-month high. But investors quickly cast a lifeline and the metal is recovery mode.
Despite the recent drop in gold and silver prices in the international markets, prices for precious metals in India still remain at a premium and buyers are holding out for cheaper prices, stunting demand.
On Wednesday silver fell below the $30 per ounce mark for the first time since October. While some modest gains were made on Thursday, there is a real possibility that silver will be a net loss over 2011. Analysts stress to stay focused on the Eurozone and Dollar Index.
Silver prices fell as ECB announced lowering both interest rates and bank reserve ratios to create liquidity for European banking institutions. While the announcement should have stimulated the markets, the ECB stated that it would not purchase bonds in order to ease sovereign debt issues.
Precious metals have been defying conventional wisdom in regards to the Eurozone debt crisis. For silver, the problems are exacerbated by the metal’s role as an industrial and investment metal. Silver’s price going forward depends on reduced volatility stemming from a debt relief plan.
Silver suffered a sharp setback in early trading Monday as the market reacted to the Bank of Japan’s move to devalue the yen. Investors and traders will be monitoring the actions of other central banks, such as China which many anticipate will loosen its monetary policy by the end of the year.
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.
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