Will it make any difference to gold and silver whichever of these appalling presidential candidates gets elected to govern what still remains the world’s most powerful nation? Obama has accelerated the decline in the nation’s superpower capability, arguably Bill Clinton’s legacy, and the erosion is set to continue with his wife in office but would […]
Here’s one statistic that hit us by surprise. The amount of physical silver available for investment is approximately three times as much as for physical gold. We will get to the reasoning behind these figures later, but think on this.
The last month the spot silver price has seen a high of $42.00 an oz. and a low of $37.00 an oz.
Silver has certainly lived up to its reputation for volatility this week. Climbing to a high of just off $41.00 an oz to a low of $38.35 an oz in just three days has left this writer in more than two minds.
The announcement yesterday of the latest disaster delaying fudge up tactic by Europeans hit the price of both silver and gold by the Comex close and followed through in Asian trading. However in early morning European trading it looked as if reality had at last taken over and the silver price had climbed back to $39.40.
At one time “silver” coins actually contained a considerable amount of silver, 50%-90% depending upon the issuing country.
Up to 1965 US dimes and quarters were minted with 90% silver and half dollars contained 40%.
In the UK coins minted between 1920 and 1946 had 50 % silver. Coins minted prior to 1920 also contained quantities of silver but these have become somewhat rarer and many have a collector’s value that does not relate to the value of the silver they contain.
Sorry about the very obvious pun but we thought we should tell you that we have placed a day order for SLV Jan 2010 $17 call (SLVAQ) at $0.90 a contract.
Since the beginning of August spot gold has stayed within a $36 range, less than a 4 % movement between peak and trough. That this has been due to factors such as Indian jewelry demand falling while China has increased its buying, a more or less range bound dollar and oil also staying more or less around the $70 a barrel mark is undeniable.
The world’s biggest silver ETF, the iShares Silver Trust has holdings of the metal at an all time high of nearly seven thousand six hundred tonnes, up by more than 10 % already this year.
Drivers of silvers’ strength are said to be Indian investors attracted to silver as a less costly store of value than gold and the buying activity of fund managers.
Last year saw gold gain over 5% while silver fell out of favour with a fall of near 24% over the same period. Now it looks like silver has regained the comfort zone above $13 an ounce with there are indications that it can move onward from here.
Silver has enjoyed a good run over the last five years.
In April this year spot silver hit a twenty three year high at over $20 an ounce but since then, in only seven months, has trended down to a low of $8.83 an ounce in early London trading this morning, Monday 27th October, before bouncing off its low to $9.50 at midday ET. .
With stocks in every sector and every world exchange that has opened after the weekend continuing their downward plunge, it can no longer be argued that we are not well and truly into a worldwide financial crisis situation.