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Archive for the ‘Silver Market Price’ Category

Silver is one metal that’s making the waves these days thanks to its increasing worth in the market. While gold continues to be profitable as an asset, silver is also running fast in becoming the next standard when it comes to precious metals, and in a few years’ time, it will be can be worth as much as gold. But how can this be, considering silver has always been cheaper than gold? Below are some factors to consider:

The demand for silver bullion continues to rise since it first became a trend back in 2009. Selling for as much as $11.00 an ounce in May, it rose to as much as $19.00 per ounce by the end of the year. The demand for silver in terms of industrial purposes is also expected to carry out the metal’s price in 2010, thus making it more valuable in the succeeding months. A good scenario to look at is the situation of recovering economies such as China, where their demand for industrial silver has gradually increased since last year.

Silver blends with changing trends. In terms of the gold-silver market, as the price of gold goes higher, the monetary value of silver goes up as well. However, unlike gold, which easily gets affected by the dollar slump, silver even becomes stronger in times of unstable economic behavior, such as inflation risks and US deficit, as not only does its industrial demand remains intact. Also, economic fluctuations force investors to hold more on to their metal assets, such as silver and other precious metals.

According to analysts, silver stands a great chance in becoming more valuable in improving economies, and it benefits from almost the same market drivers as gold. It may not hold a major reserve in central banks, its demand for investment has increased rapidly with the same reasons as for gold. Unlike gold which has been purchased and kept mainly for its image of luxury, silver has gained distinction for mainly industrial usage. Because of its variety of applications particularly in emerging technologies, it is expected that silver will be the top metal to be purchased for different commercial and industrial investments, not only in recovering economies, but also in newly developing markets.

Finally, currency analysts find the resurgence of the dollar to bring a great impact on the value of silver. As the dollar regains its strength in 2010, investors wane from purchasing gold bullion.

Many people didn’t believe for years that the gold and silver markets in the world were being manipulated. However, given the current economic state and the constant intervention of central banks, it’s quite evident to see that this is happening. The only way these markets are able to be seen as not being manipulated is by believing that they are the only market that isn’t being taken advantage of, because every market is being used by the central banks such as the Federal Reserve for their own benefit. Why are the banks manipulating the price of gold?

Well, for one, the competitiveness of the precious metals influences interest rates for other methods of spending, which typically are preferred to be kept low. There are many investigations and reports that are being made about the use and manipulation of gold and silver in the economy, which makes it hard to know which one is best trusted. However, you must at least understand that the gold and silver prices, supply, and other elements are in fact being controlled by the government.

You can see a clear example of this manipulation in the increasing demand for gold and silver as other investments become less attractive. More and more people are demanding gold, and somehow less is being given out, as the world governments hold out for the big gold rush that appears to be looming in the future. Add to that the fact that the GATA (Gold Anti-Trust Action) committee can’t get the Fed to give up information about the precious metals and the situation that is currently going on with the U.S. gold reserve. Obviously, this is in part due to privacy laws and such, but is still further proof that the government is tugging on the strings of the precious metals markets every single day.

If people were to buy large quantities of gold and stop using currencies for commerce, even on a small scale, drastic things could happen. The collapse of national currencies could have a devastating effect on the world economy and governments will try as hard as they can to keep that from happening. However, with the current economic situation in the United States and abroad, the Federal Reserve and other banking an money controlling entities may not be able to keep a tight reign on the gold and precious metals markets. They very well may set their own level according to market supply, demand and who is investing.

It seems that the state of things is nobody’s business, except for Wall Street. However, it still leaves many people wondering what the deal is with the markets in the end. Many people are concerned by the government’s lack of openness about where their money is going, where markets are being toyed with, and why they are using these markets to their advantage in every way possible.

This creates a lot of misleading answers to questions about the gold supply, the use of gold in the current economy, and even the state of the gold and silver markets and how they will play out over time. Although these markets are typically independent from other economic situations, if they are being manipulated by anyone, they cannot be depended on nearly as much as people might have thought.

However, with the state of the economy and the pace of quick change in today’s volatile markets, gold cannot be manipulated forever. The economy may eventually force the price of gold and silver through the roof as it busts through artificial price controls by the Fed. Do you want to wait until the price of gold skyrockets before you add it to your investment strategy?

Remember, you should always study the market carefully and talk to experts before embarking on any investment ventures.

A little over a year ago, the internet was abuzz with rumors about J.P. Morgan’s alleged giant naked short position in paper silver futures and their suppression of the current silver price (supposedly at the behest of the Federal Reserve).

People feared what would happen to silver prices per ounce if this naked short were to suddenly unwind.

Since then, it appears they have been unwinding their silver shorts and the price of silver has risen dramatically. From August to October of 2010, it was up over 70%, to the highest prices seen in 30 years.

How much higher can it go?

James Turk of http://www.goldmoney.com thinks it will go all the way to $400 per ounce by 2015. That would be quite a dramatic rise, since it’s hovering around $30 per ounce as I write this.

There have long been rumors of market manipulation of precious metals prices, and especially silver prices, largely in an effort to control the value of the U.S. Dollar. So what does this mean for big and small investors?

You should definitely own gold and silver coins. It’s a no-brainer. And you should take physical delivery, at least for a certain basic amount you want to keep in your physical possession. Silver is easily tradeable and is still legal tender (at least certain types of silver coins).

While it is interesting to read the rumors, it is also too easy to get caught up in them at the expense of making decisions and taking action.

As small investors, we cannot do much about the larger players who may be manipulating the commodities and precious metals markets. Whistleblowers like Andrew Maguire do their part, but it has whatever effect it has and doesn’t have whatever effect it doesn’t have.

Totally outside our control. We, as investors, will never know all there is to know about a given commodity or a given market. We make the best decisions we can with the information we have at hand.

I feel that time is of the essence and action needs to be taken (if you have not yet invested in precious metals.) There is not doubt in my mind that, although there will be inevitable peaks and valleys, the overall trend for the foreseeable future is for gold and silver prices per ounce to rise.

In 2010 there was quite a movement to defeat JP Morgan’s silver price manipulations, but I don’t know how much of an effect it had. I as a small time investor prefer to simply and quietly go about my business developing a base position in precious metals to both protect myself and potentially profit off of possible booms, although I know that I am not smart enough to be a commodities trader. I leave that to the big boys.