Category Archives: Buy Silver

China May Dominate Precious Metals Markets in the Coming Years

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This week, Shanghai, China becomes a new market for silver futures trading. China is already a major global gold market player. Many believe that Chinese influence may even put a damper on silver’s well-known price volatility, and devise an end to perceived COMEX silver market manipulation. This belief is grounded in knowledge of China’s handling of the gold market, which is known to be a significant international driver of gold prices.

The significantly smaller silver market could see substantial impact from China’s accelerated industrial and retail silver consumption in the near future. COMEX short sellers of silver may liquidate these positions, in anticipation of sinking prices due to Chinese precious metals market activities.

Chinese fabrication and investment demand has already made China into a net silver importer. Currently standing behind Mexico and Peru in silver production, China may be the largest global silver consumer. Although the belief that China may have more than a decade’s stockpile, their appetite for silver is currently growing by double digits.

http://www.silverbearcafe.com/private/05.12/chinaroad.html

Businesses and Consumers Seize Opportunities in Silver Scrap Recycling

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According to the most recent edition of the Thomason Reuters GFMS World Silver Survey, increases in the scrap silver supply have been noted in both 2010 and 2011. The report further indicates that the silver supply produced in 2011 contained almost twenty-five percent scrap silver.

Poor global economic conditions likely contributed to the rise in silver scrap, as individuals sold not only personal property made from silver, but also purchased used silver items to resell for their valuable silver content.

Industrial silver recycling, although not profitable for individual consumers, is, nonetheless a large silver scrap supply contributor. The supply of scrap silver from electronics, dental alloys and industrial catalytic reactions is bolstered by new, stricter regulatory legislation over companies producing precious metals-containing, hazardous waste. Precious metals recycling service companies take on the waste liabilities of other companies in order to take advantage of the ability to harvest recyclable metals, including silver, platinum, gold and copper.

http://silverinvestingnews.com/11936/silver-scrap-supply-sees-further-growth-boliden-world-silver-survey-gfms.html

COMEX Silver Futures Margin Requirements Reflect Greater Silver Supply

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Margins for silver speculators are being reduced for the second time this year. Silver futures margins for some COMEX-monitored silver sellers were raised more than five times in 2011. Those rate hikes nearly doubled COMEX silver positions between March and June of last year. A thirty percent silver price decline was then blamed on the drastic margin requirement changes.

The declining margins for 2012 are seen by many as a way to reverse silver price trends by decreasing trading expense, although companies trading on the COMEX maintain margin changes are a protective mechanism for both participants and the market. Others speculate that lower trading volumes in the first half of 2012 have created a need to attract market liquidity. Lower risk in the silver market following increased market stability is the most logical explanation. Silver demand has seen a slowdown in the first quarter of 2012, bringing COMEX stockpiles to their highest level since 2002.

http://www.silverstrategies.com/story.aspx?local=0&id=32529

The Future of the Silver Industry

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Silver is a commodity whose attributes make it sought after for industrial uses and also as hard money and an inflation hedge. What is remarkable about silver is that at this point in history it will do well both in good economic times and bad ones. Should the world economy recover and move out of recession there will be enormous industrial demand for silver because of the growing applications it has for electronics, alternative energy, and medical uses.

If the world economy continues to deteriorate and inflation continues to be a serious problem, silver will be in high demand by people wanting to protect themselves from losing purchasing power. Dollar devaluation in particular is already driving record sales of American Silver Eagles and other silver dollars in the United States. It is has been said by Congressman Ron Paul and experts in the precious metals markets that as gold continues to go higher a point will come when most people will not be able to afford it and they will instead move to silver. This will put massive upward price pressure on silver as demand outstrips supply.

Added to these promising market fundamentals is the fact that silver inventories have been getting smaller over the years, especially compared to gold. In the 1960’s there was a ten year stockpile of silver. Currently there is only a three month supply of silver above ground. There is actually less silver above ground today than there is gold.

Many commentators continue to claim that gold and silver are in a bubble. But the facts directly contradict that claim. Only a very small percentage of the population is even aware of the facts about silver. Still less people with that knowledge have taken action by investing in silver. You can’t have a bubble without widespread ownership. Until that happens the future of silver investment will be very bright indeed.

Silver Unaffected by Second Round of Rising Indian Precious Metals Import Taxes

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April Fool’s Day 2012 marked the first day of increases in India’s precious metals import taxes. The additional levy went into effect after being doubled on January 17, 2012. For purchasers of silver, the news didn’t hit as hard, since this second round of increases did not affect silver imports.

India’s account deficit has been widening as bullion imports have reached record levels, while precious metals purchases have surged. As with most other global economies, Indian currency has simultaneously experienced record lows. In an effort to stabilize the Indian rupee, banks will also be required to submit reports to the Reserve Bank of India regarding valuation and holdings of precious metals.

The new tariffs are seen by many in India as “an attack on traditional Indian culture.” Criticism is coming from all quarters, including investors, dealers and Indian Parliament members. Surging precious metals prices may not only negatively impact jewelry and gold dealers, but are likely to dampen the traditional wedding season in India.

http://www.goldmoney.com/gold-reasearch/roman-baudzus/indian-gold-taxes-hurting-traditional-culture.html
http://www.bloomberg.com/news/2012-03-16/india-raises-gold-import-tax-for-second-time-prices-drop-1-.html