Commodity Trade Mantra

Posts Tagged ‘Industrial demand’

While the Spotlight was focused on Gold, Silver Quietly Outperformed

While investors have primarily focused on gold’s bull run, silver has quietly outperformed the yellow metal. Between Jan. 1 and July 11, the price of silver increased 44.7%, while the price of gold increased 27.7%. The sensitivity of industrial demand to economic factors can make silver more volatile than gold, but recent surge in silver appears to be primarily driven by investors seeking safe haven.

The Gold And Silver Trend Forecast For 2016

Beneath all of the artificial influences and all of the leveraged paper, the gears of the physical market for gold and silver still turn. We can be sure prices will reflect actual supply and demand for physical gold and silver at some point, even if we do not know when. With that in mind, here is a look ahead to 2016.

Silver Prices Up 10.3% YTD - Outperformance To Continue

Silver is highly undervalued currently versus gold with the gold silver ratio at 62:1, while long term historical average is 15:1. We believe that silver will likely surpass its non inflation adjusted high near $50 per ounce and its real high or inflation adjusted high of some $140 per ounce in the coming years.

Silver Remains in a Tug of War Between Supply and Demand

Silver is not benefiting even though it has so much industrial use as people still call it a precious metal. Until the financial system blows up again, the tug of war between supply and demand in the silver market is likely to restrain silver prices for the immediate future.

Silver to 100 Dollars within a Reasonable Timeframe

Looking at the historical gold and silver markets, the price ratio of gold to silver – currently over 60:1 – has fallen precipitously in raging bull markets for the metals, going as low as 12:1. So the silver price could have an upwards move at least four times the rate of any gold price increase.

Silver Bullion Imports by Gujarat hit 5-year High

Many bullion traders shifted to Silver on account of the extremely high duty on gold. Silver imports by the state of Gujarat totaled 1,526 mt during April 2013 to January 2014, surpassing the earlier record of 1,497 mt achieved during the corresponding ten-month period in 2008-2009.

Silver Prices - When Monetary Demand Trumps Industrial Demand

With regard to silver, artificial pricing has gone on for so long that consideration of the fundamentals seems to be an exercise in the abstract. At some point, prices will move freely – though not necessarily orderly. How will one know? – We caught a glimpse of what a parabolic might look like in 2011.

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