Commodity Trade Mantra

Posts Tagged ‘Silver Institute’

Metals Zoom On Projected Massive Infrastructure Spending - How Long Before Silver Takes-Off?

Metals are surging due to projected industrial expansion. To argue that a massive infrastructure spending program will be beneficial for lead, zinc & copper prices, but immaterial for silver prices, is as ridiculous as claiming that overvalued stock prices can continue to surge amidst the “gigantic pink elephant” that is surging global interest rates and plunging worldwide currencies.

Opportunistic Investors' 9 Reasons for Having No Fear of Falling Silver Prices

Precious metal mining stocks had been the shining stars of Wall Street in 2016. This recent swoon in silver prices isn’t a time to panic. Instead, it could be time to go shopping. There are, in fact, numerous fundamental and psychological reasons to believe that silver prices could soon find a floor and resume their bull market run.

Peak Silver & Continued Supply Deficits Indicate Higher Silver Prices Soon

We estimate that silver mine supply peaked in 2015 and will trend lower in the foreseeable future. Due to the huge increase in Global Silver ETF demand & a large Exchange Inventory build, the silver market will suffer a forecasted 185 Moz annual deficit in 2016. Declining total supply is expected to be a key driver of annual deficits, thereby leading to higher silver prices going forward.

Silver Bull Alive & Well Despite Recent Correction-Weakened Sentiment

Silver has spent most of the third quarter drifting sideways to lower. This has naturally weighed on sentiment, with investors & speculators alike growing more bearish during recent months. Yet silver remains way undervalued relative to its primary driver gold, so the young silver bull market is far from over. Silver’s upside from here is still massive as it mean reverts higher with gold.

Why Silver Prices Could Have Considerably More Upside Than Gold

When we take a step back and analyze the catalysts behind the move higher in precious metal spot prices, it’s silver prices that could have considerably more upside than gold. Today, we’ll lay out the case why physical silver could be on its way to $30 an ounce, which would represent a gain of nearly 60% from where physical silver is today.

With Silver Bull Just Starting, the Best Gains in Silver Miners are Yet to Come

The major silver miners just reported an amazing Q2’16, with silver’s young new bull fueling radically-higher operating earnings. The great inherent leverage of silver-mining profits to silver prices was the fundamental justification underlying silver stocks’ epic gains so far this year. With silver’s bull only just starting, the best gains in silver-mining profitability & thus stock prices are yet to come.

Silver is in a Sweet Spot and This Trend can Continue

I think, right now, silver is in this sweet spot and I think this trend can continue. The growth in solar power is helping drive the demand for silver upward & could potentially gobble up to as much as 25% of the global silver market. Investor demand for silver is expected to continue breaking records through the rest of the year. Shrinking supply will also likely put upward pressure on silver prices.

Young Silver Bull Faces Silver Futures Driven Correction

Silver futures speculators have ramped their silver longs to extreme record levels. This has left silver very overbought, at risk of a considerable near-term selloff once something inevitably spooks the hyper-leveraged futures speculators into unwinding their excessive longs. But far from being threats, mid-bull corrections are offer investors the best buying opportunities within ongoing bull markets.

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.

Silver Takes the Gold Prize: Commodities Half Yearly Report 2016

Caused by worries of a summer interest rate hike and uptick in the U.S. dollar, gold and silver both stalled in May but have since rallied on the back of Brexit and with government bond yields in freefall. This has been highly constructive for gold and silver, as yields and precious metals tend to be inversely related. As for silver, some forecasters place it at between $25 and $32 an ounce by year’s end.

India's Booming Silver Market Still Growing: World Silver Survey

Silver bullion trade in 2015 continued to be dominated by flows to India, where total imports reached an all-time high of 256.0 million ounces, rising by 16% from the 2014 level. Physical silver bar investments in India increased by 31% to 82.5 million ounces, the highest since 2008. All this despite a record silver production total in the country of 12.0 million ounces.

Silver Prices to Create a Fundamental Nirvana for the Silver Miners

Silver miners enjoyed a very strong first quarter in fundamental terms. And this explosive silver-mining profits growth is likely only starting. Stable or even-lower costs due to higher gold byproduct credits combined with far-higher selling prices will create a fundamental nirvana for the silver miners. Their stocks still have enormous upside.

Global Silver Supply Deficit Surges On Revised Data

If the cumulative global silver supply deficit since 2004 of one billion ounces wasn’t large enough, a data revision published by the Silver Institute shows the actual figure was much higher. How much higher? A great deal when the additional revised amount would totally wipe out all the silver at the Comex and Shanghai Futures Exchange warehouses.

Young Bull Run In Silver Prices Is Just The Tip Of The Iceberg

When silver awakens to a new bull market after a long bearish slumber, massive gains are usually unleashed. The tiny advance in silver prices (of over +20%: official new-bull-market metric) so far (faring better than gold) is just the tip of the iceberg. Speculators and investors alike are returning as awareness spreads of how radically undervalued silver is compared to prevailing gold prices.

Silver Investment Demand Will Totally Overwhelm The Market

I have said countless times in articles and interviews that silver investment demand will be the driving force for the silver price in the future, not industrial demand. According to the data by the folks at GFMS, total Silver Bar & Coin demand was a paltry 51.2 Moz in 2007. This surged after the U.S. Investment Banking & Housing Market collapse to 240 Moz in 2015.

Primary Silver Mining Company To Cut Production 25% In 2016

The low price of silver has finally claimed is first victim. Endeavour Silver announced that it will cut silver production of one of their mines by 25% in 2016 & put it on care and maintenance. It will be interesting to see if other primary silver mining companies also announce a cut back in production this year.

Record Silver Coin Demand Signals Financial Trouble Ahead

Official silver coin sales are forecasted to hit a record 130 Moz this year. This huge surge in demand represents a percentage of investors who have decided to exchange increasing worthless paper currency for sound money. Understanding this ongoing silver market trend is important for investors who want to protect their wealth when the next major financial crash occurs.

Do The Silver Market Fundamentals Matter? If Yes - When?

This is the question an increasing number of gold and silver investors are asking themselves. Unfortunately, the fundamentals don’t provide the EXACT TIME when they matter. Yes, it’s true that the propping up of the markets by the Fed and Central Banks has gone on longer than we realized, the unraveling of the World’s Greatest Financial Ponzi Scheme is still on its way.

Gold is Money - But Where Does This Leave Silver?

No doubt the principal focus will always be on gold as the ultimate metallic money, but the temptation to overlook silver’s monetary credentials is a mistake. Arguably, it could even have a greater claim than gold to be the people’s money, because for all of commercial history it has been more widely circulating for that mundane purpose.

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