Investor Guide: How To Buy and Trade Silver Prices (NYSEARCA:SLV, NYSE:JPM, NYSEARCA:SIVR, NYSEARCA:AGQ, NYSEARCA:ZSL) | ETF DAILY NEWS

Investor Guide: How To Buy and Trade Silver Prices (NYSEARCA:SLV, NYSE:JPM, NYSEARCA:SIVR, NYSEARCA:AGQ, NYSEARCA:ZSL) | ETF DAILY NEWS

www.TheSilverPrice.info

Larry D. Spears: In late December, silver dipped to a 12-month low near $26 an ounce, and traders who responded to the barrage of “buy” recommendations were quicklyrewarded as the metal soared to a high of $37.18 just two months later.

Today, silver has pulled back below $29 an ounce, giving investors another chance to establish a position before the metal makes its next move higher.

After all, the fundamental case for silver prices remains as strong as ever.

Silver Institute to release China market report | ProfessionalJeweller.com

Silver Institute to release China market report | ProfessionalJeweller.com

www.TheSilverPrice.info

The US-based organisation The Silver Institute has been commissioned to write a report on the Chinese silver market, with a focus on the growing importance of China in the global silver industry, emerging trends and their potential market impact.

The report will be produced by The Silver Institute in partnership with precious metals consultancy group Thomson Reuters GFMS and will be published in October 2012.

A release from The Silver Institute said: “Twenty years ago China accounted for some 3% and 5% of global silver demand and supply, respectively. In 2011, according to World Silver Survey 2012, those figures climbed to 16% and 14%, making China the world’s second largest consumer and third biggest producer of the white metal.”

Sprott sees great things for gold and silver - SILVER NEWS - Mineweb.com | The world's premier mining and mining investment website Mineweb

Sprott sees great things for gold and silver - SILVER NEWS - Mineweb.com | The world's premier mining and mining investment website Mineweb

www.TheSilverPrice.info

In his keynote presentation to last week's New York Hard Assets Investment Conference, Eric Sprott, as usual as a precious metals believer, gave an upbeat presentation on the long term prospects for gold and silver.

He opened his address by pointing to a big change in the markets since he presented at the same event a year earlier when, as he pointed out, the silver price was around $49.50 "until they bombed it" and gold was shortly to see $1900 plus.  But overall he pointed to the huge sea change in the precious metals markets over the past 12 years and that the 12 month correction we are currently seeing is a temporary phenomenon and that he reckons the physical market in gold and silver is actually still in great shape.

He sees markets in general being distorted by manipulation by governments - examples being homeowner tax credits, cash for clunkers, TARP, QE1, QE2, LTROs, unlimited swap lines, etc.  A veritable litany of stimuli to prevent what should be happening from happening.  He quoted a recent interview with Jim Grant - the highly respected economic commentator - who stated that "all markets are manipulated".  Sprott pointed in particular to interest rates "which for sure are manipulated" and gave credit too to GATA who came out with the statement that markets were being manipulated long before the theme has been picked up by a number of commentators including Jim Grant.  He very strongly concurs with this view pointing out that government stimuli have been designed to try and elicit some strength in stock markets and a degree of suppression in the precious metals markets which they do not want to go up as this indicates the relative weakness in fiat currencies.

Sprott touched on a number of facets affecting the markets at the moment - JP Morgan and its big derivatives losses, financial repression, Sovereign debt - describing the latter as being in a Minsky Moment who said "If you continue to expand  your economy by increasing the amount of debt, there comes a time when the productive capacity cannot handle the debt".  Greece is seen as a great example of this,  He sees Spain as the next one on the list, although Portugal is probably in an even worse position.  He sees this as the dominoes which are going to fall one after the other and, in his mind, there is no question that they will fall.

The potential effects on the banking system are drastic.  He reminded the audience that at the peak of the 2008 financial collapse Treasury Secretary Paulson said that he was within hours of shutting the banking system down!  "Please never forget those words" said Sprott.  The system is vulnerable and has got close to this several times since.

For gold he feels that as people realise how vulnerable, flawed and over-levered and risky the banking system is they will want to withdraw their money and put it somewhere which they will see as keeping its value.

There are a number of other factors he sees as being particularly positive for the gold market.  These include:

• The zero interest rate policy
• China's dramatic increase in gold imports
• Chinese and Russian mined gold (two of the world's major producers) never gets to the free market
• Central Bank buying seemingly increasing

This effectively means a large percentage of global gold supply is being taken off the market.  "If these trends persist", said Sprott," the price of gold will not stay down".

The physical market supply thus has Sprott asking "Where is the gold coming from".  The only source which he sees as likely is that Central Banks are selling gold surreptitiously, perhaps by leasing it so that any decline does not show on their books.

Silver:  When it reached $49.50 there was suddenly 1 billion ounces of ‘paper' silver released onto the market.  Sprott is convinced that certain people in the market with very big short positions manipulated the price down.  "We see very strange things happening in the silver market" said Sprott.

He couldn't understand also why people in Europe were not buying gold given their financial system is collapsing around them.

Why does Sprott like silver so much?  People buy 50 times more silver than gold and while paper silver may be ruling the market, the day of physical will come.  "When currencies fail" said Sprott "gold will become a part of the official reserve currency and silver will have a very, very major role again."

Sprott concluded by saying while he loves gold, loves the data, that silver will still be the investment of the decade.  "Stay the course" he said.  Even though Central Banks et al may be working against you gold and silver will ultimately prevail as fiat currencies continue to decline in value.

Three Reasons Silver Prices Will Rally - Money Morning

Three Reasons Silver Prices Will Rally - Money Morning

www.TheSilverPrice.info

With the recent volatility and lows in the gold market, many investors also have been wary of silver prices. 

Silver on Friday closed down 0.4% to $28.87 per ounce. For the week, prices dropped 5.1%. 

Not the prettiest picture, but for the year silver has increased more than twice the price of gold thanks to growing confidence that the global economy will dodge another recession bullet. 

David Jollie, an analyst at Mitsui & Co. Precious Metals Inc., recently said to Bloomberg News, "A greater amount of confidence in the global economy generally means higher growth and that means more silver demand. If you look out beyond the end of the year, you can still see reasons to be bullish."

Why Silver Prices Will Rally

Increased Demand: The global head of metals analytics at Thomas Reuters GFMS, Philip Klapwijk, has forecast silver sales to increase as end-users expand inventories that thinned at the end of 2011. 

A large portion of silver demand - 80% - comes from fabrication, which is expected to rise about 3% to 5% this year to roughly 900 million ounces.

Also helping is China's manufacturing expansion and an increased electronics industry demand. 

Klapwijk also sees current monetary policy increasing investors' appetite for silver and triggering a subsequent price rise. 

Gold, Silver Prices Dip while US Bullion Coins Notch Gains | Coin News

Gold, Silver Prices Dip while US Bullion Coins Notch Gains | Coin News

www.TheSilverPrice.info

Gold and silver prices continued to drift lower Tuesday, but platinum closed higher for the first time in more than a week and palladium settled up for the first time since Thursday.

Gold was again pressured by a weaker euro and stronger U.S. dollar as the yellow metal fell to the lowest point in more than 4-1/2 months.

"(Gold’s) safe haven status has been tarnished," Richcomm Global Services senior analyst Pradeep Unni said, according to Reuters. "It will wobble on the euro’s weakness, but in a very short term, bargain hunting and pent-up demand will emerge taking it higher."

Gold prices for June delivery fell $3.90, or 0.2%, to $1,557.10 an ounce on the Comex in New York, marking a settlement that is the lowest since December 29. Prices ranged from an intraday low of $1,546.80 to a high of $1,564.40.

"The commodity sector is being hit with massive liquidation of funds as investors’ fears regarding a slowing global economy and potential European sovereign issues trump all else," MarketWatch quoted Tom Essaye, editor of the 7:00′s Report, a daily commentary on equity and commodity markets and the economy.

"Gold is getting to that critical level of support at $1,550, and if you can stand the risk, taking a shot there on the long side probably makes sense… As Europe continues to unravel, the prospect of a full blown crisis will increase, and I think you’ll see gold start to absorb some of that money looking for a safe haven beyond the U.S. dollar."