Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
S&P 500 – Is a 5% Correction Enough? - 6th Dec 21
Global Stock Markets It’s Do-Or-Die Time - 6th Dec 21
Hawks Triumph, Doves Lose, Gold Bulls Cry! - 6th Dec 21
How Stock Investors Can Cash in on President Biden’s new Climate Plan - 6th Dec 21
The Lithium Tech That Could Send The EV Boom Into Overdrive - 6th Dec 21
How Stagflation Effects Stocks - 5th Dec 21
Bitcoin FLASH CRASH! Cryptos Blood Bath as Exchanges Run Stops, An Early Christmas Present for Some? - 5th Dec 21
TESCO Pre Omicron Panic Christmas Decorations Festive Shop 2021 - 5th Dec 21
Dow Stock Market Trend Forecast Into Mid 2022 - 4th Dec 21
INVESTING LESSON - Give your Portfolio Some Breathing Space - 4th Dec 21
Don’t Get Yourself Into a Bull Trap With Gold - 4th Dec 21
GOLD HAS LOTS OF POTENTIAL DOWNSIDE - 4th Dec 21
4 Tips To Help You Take Better Care Of Your Personal Finances- 4th Dec 21
What Is A Golden Cross Pattern In Trading? - 4th Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - Part 2 - 3rd Dec 21
Stock Market Major Turning Point Taking Place - 3rd Dec 21
The Masters of the Universe and Gold - 3rd Dec 21
This simple Stock Market mindset shift could help you make millions - 3rd Dec 21
Will the Glasgow Summit (COP26) Affect Energy Prices? - 3rd Dec 21
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Where Silver Prices Are Heading

Commodities / Gold and Silver 2013 Aug 12, 2013 - 12:30 PM GMT

By: Money_Morning

Commodities

Silver prices today continue to wander aimlessly around the $20-an-ounce level as the white metal is buffeted by many of the same factors restraining the gold price. This drifting comes after a dramatic drop of 35% in the first half 2013.

As with gold, much of the drop is due to fears that the U.S. Federal Reserve will begin "tapering" purchases of bonds from its current $85 billion-a-month level. If this comes to pass, the financial markets currently believe this will reduce excess liquidity and therefore any possible inflationary fires.


Here's what investors watching today's silver price have to understand...

There are other factors at play in the silver market, of course, besides the Fed. In fact, most of these factors point to an upswing in silver prices going forward.

Here are a few reasons to bet on higher silver prices in 2013.

Silver Prices and Physical Demand

As with gold, there's strong global demand for the physical metal itself.

Just look at the sales of the U.S. Mint's 1 oz. American Silver Eagle coins. The Mint reported that, during the first half of this year, it sold 25 million Eagle coins, an increase of nearly 44% from 2012. In the first half of last year, the Mint sold about 17.3 million of the 1 oz. coins.

The trend continued in July with the Mint reporting sales of 4,406,500 ounces of Silver Eagle coins. That is up from June's 3,275,000 ounces and May's 2,278,000 ounces.

It looks as if the Mint is well on its way to a record year for sales of the Silver Eagles.

JPMorgan's Bet on Silver Prices

Next we turn to JPMorgan Chase (NYSE: JPM), the custodian of the iShares Silver Trust (NYSE: SLV), the largest silver exchange-traded fund.

The Wall Street bank is infamous among silver investors for the huge amount of shorts it has had in the marketplace for years. The bank was even sued with a lawsuit claiming it was manipulating the silver market. But the lawsuit failed.

Nevertheless, it is always interesting to see what JPM is up to in the silver market...

Early settlements in the July silver futures contract were eye-opening. It was reported that JPMorgan took delivery of approximately 7.4 million ounces of physical silver in COMEX warehouses for its own benefit.

And the pattern has continued with the August silver futures contract.

According to an article appearing on the TheStreet.com, JPMorgan had virtually no silver in its warehouse in May 2011. But now, the bank has accumulated about 37.7 million ounces of silver...

Again, I want to emphasize that the silver is for the firm's benefit, not clients or the SLV ETF.

A related note is the sharp drop in short positions on silver futures by commercial traders, otherwise known as Wall Street banks.

Short positions stood at nearly 260 million ounces of silver in February of this year. Now, according to Sprott, short positions have fallen to less than 20 million ounces. This is the lowest short position by commercial traders in more than 10 years.

How to Profit from Higher Silver Prices

For investors looking to join JPMorgan and hoard physical silver, as discussed earlier, silver coins are a great choice.

Another option is to own exchange-traded vehicles directly backed by silver bullion in vaults not controlled by JPM.

These funds can be bought on the stock exchange like a stock and include the ETFS Silver Trust (NYSEArca: SIVR) and the Sprott Physical Silver Trust (NYSEArca: PSLV).

Whichever way you decide to invest in silver, do it soon before the price slingshots to $60 an ounce - which, with these five silver price drivers, it could do in 2014.

Want to know what resources expert Rick Rule is doing with silver this year? Is Now a Good Time to Buy Silver? Rick Rule Weighs In

Source :http://moneymorning.com/2013/08/09/where-silver-prices-are-trading-today-and-whats-next/

Money Morning/The Money Map Report

©2013 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in