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 […]
With what seems like great glee, a number of the worlds’ financial media reported the 11% drop in the price of silver when the Asian markets opened for business this Monday morning. Among them were Bloomberg, The Los Angeles Times, Wall St. Journal, Reuters, and The Economic Times of India.
Slides, plunges, bubbles, bulls routed and other synonyms featured in their articles as if wanting to give the impression that the trend in silver had reversed and that it would be prudent to cut and run.
Whether Silver is in a bubble is a more complicated issue to resolve than the same question concerning gold which we addressed in our previous article. Historically, or at least until the advent of sophisticated stock markets in the nineteenth, twentieth and so far twenty first centuries, silver has mainly stayed in lock step with gold.
It seems timely to discuss a trading activity when our favoured investment vehicles, silver and gold, may lose the momentum that has propelled them sky bound for so long.
Historically, May and June have not been months when either metal has shown much volatility. The summer holiday period follows when many traders pack their bags and markets generally slow down volume wise and may carry over to the precious metal sector.
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.
A new report produced by NanoMarkets entitled “Silver powders and inks for printable electronics” forecasts that the market for conductive silver inks used in emerging technological applications will grow from US$176 million in 2007 to US$1.2 billion by 2014.
Our editorial team was unanimous in expecting the precious metal markets to start this week in a seriously upbeat mood. Silver was our bet for outperforming gold, platinum and other PGMs after the expected profit taking at the end of last week turned out not to be as severe as we thought.
As has been oft repeated on these pages, the gold/silver ratio has averaged well below 60 in earlier times and, for about the last year or so has wavered around 65 and encouragingly been declining as both metals reached new highs, in silver’s case for the last twenty years and longer.
Now we see the ratio at over seventy despite gold holding its own so what is going on?
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.