Silver’s Average Annual Price for 2011 Was A Record High

Posted on by

Although the price of Silver in 2011 ended down 9.5% on the year, the average annual silver price for 2011 of $35.12 per ounce actually set a record, a staggering 74% gain over the 2010 average annual price of $20.19 per ounce.

Michael DiRienzo, Executive Director of the Silver Institute said…

Silver’s strong price performance last year owed much to the strength in investment demand, as well as growth in industrial demand, much of which is relatively price insensitive in the short-term

Silver outperformed all precious metals in terms of increases of average annual prices: Palladium posted a 39% gain in 2011, while gold was up 28% and platinum rose 7% last year over 2010′s figures.

To underscore silver’s price strength in 2011, in a report released in November 2011, entitled The Silver Investment Market – An Update, produced by Thomson Reuters GFMS for the Silver Institute, the authors forecasted that world silver investment would reach $10 billion in 2011, comfortably exceeding the previous record of $6 billion set in 2010.

For more information on silver, or a free copy of The Silver Investment Market – An Update report, please visit SilverInstitute.org . The Silver Institute is a nonprofit international industry association headquartered in Washington, D.C. Established in 1971, the Institute serves as the industry’s voice in increasing public understanding of the value and many uses of silver.

Source: MarketWatch

Gold & Silver May Trade With A Positive Bias

Posted on by

In a report released by Indian commodities firm, Angel Commodities, Gold and Silver are expected to trade with a positive bias today, taking cues from weakness in the US dollar coupled with upbeat sentiments in the global markets.

European markets traded higher today, ahead of US manufacturing data which is expected to come on the positive side. ISM Manufacturing Purchasing Managers’ Index (PMI) in the US is expected to increase up to 53.3-mark in December from the previous level of 52.7 in November.

Additionally, improved manufacturing data from China, India and the UK also led to rise in investors appetite for risk in worldwide markets. The manufacturing data is having a calming effect on investors despite concerns over a potential european debt crisis.

The spot gold price rose sharply by more than 1.5 percent today on the back of weakness in the US dollar. The yellow metal touched an intraday high $1592/oz and was trading at $1589/oz till 4.30 pm IST.

MCX Gold February contract gained around 0.8 percent and hit a high of Rs27,637/10 gms till 4.30 pm IST today. However, a stronger Rupee resisted further gains on the domestic bourses. Taking cues from rise in gold prices coupled with a weaker dollar, spot silver rose sharply by more than 3 percent today. The white metal tested an intra-day high of $28.72/oz and was trading at $28.67/oz till 4.30 pm IST. On the MCX, silver March contract gained around 1.6 percent and appreciation in the Indian Rupee capped further gains on the domestic platform today.

The base metals complex traded on a mixed note today with nickel and lead trading lower while copper, zinc and aluminium trading in the green. In case of nickel and lead, sharp decline was cushioned on the back of weakness in the US dollar.

Copper prices rose sharply by almost 1.5 percent on the LME and around 0.7 percent on the MCX. Appreciation in the Indian currency capped sharp gains on the domestic bourses today.

Nymex crude oil prices gained by 2.1 percent today taking cues from the supply concerns from Iran and favorable manufacturing data from China and India. A weaker dollar and upbeat market sentiments also acted as a positive factor for the commodity.

Prices were trading around $100.92/bbl after touching an intraday high of $101.10/bbl till 4:30pm today. On the MCX, prices increased by 1 percent and were hovering around Rs5378/bbl after touching an intra-day high of Rs5392/bbl till 4:30pm today.

Outlook

Gold and silver are expected to trade with a positive bias today, taking cues from weakness in the US dollar coupled with upbeat sentiments in the global markets. Silver being an industrial metal will also take cues from upside in base metals.

We expect base metals and crude oil to trade higher today on account of rise in risk appetite in the global markets coupled with a weaker dollar.

In case of crude oil, supply concerns from Iran will also act as a supportive factor for oil prices.

View the a copy of the Angel Commodities report.

Source: MoneyControl.com

Current Price of Silver Surges On Weakening Dollar

Posted on by

Gold rose and silver surged by 5.9% on Tuesday reports Matt Day of Dow Jones Newswires. Many investors saw an opportunity in the rattled markets as the dollar sank and strength in global manufacturing activity pointed to a steady demand.

The most actively traded gold contract for February delivery, rose $33.70, or 2.2%, to settle at $1,600.50 a troy ounce on the Comex division of the New York Mercantile Exchange. This is the highest settlement price since Dec 23rd.

George Gero, vice president with RBC Capital Markets said…

We’re back to $1,600, and there are not many sellers around…It seems like the optimism about the euro is catching now that it’s above $1.30

Many metals traders have been looking at moves in the European common currency and using that a barometer for the financial conditions there. Relative calm in European markets and upbeat global manufacturing data helped push the euro back above the key $1.30 level on Tuesday fueling rallies in other growth sensitive assets.

Gold has frequently come under fire in recent months as investors worry about a credit freeze in the euro. The possibility of a debt crisis has convinced some money managers to sell their precious metal holdings in favor of increased liquidity.

Gold futures may have rose 10% in 2011, but gold prices pulled back sharply from the record highs of September as euro zone fears increased. Other traders with winning positions cashed out to lock in their profits or cover their losses in other assets.

Strength in manufacturing data from India and China, the world’s top two gold consumers, also supported futures on Tuesday, said Marc Ground, an analyst with Standard Bank.

Silver has far more industrial uses than gold jumped on Tuesday on hope that the global economic activity will remain stable. Silver prices for March delivery rose 5.9% to settle at $29.572 a troy ounce. Silver has continued to rebound after silver futures touched their lowest levels in 13 months last week.

Settlements (ranges include open-outcry and electronic trading):
London PM Gold Fix: $1,598.00,; previous PM $1,531.00*
Feb gold $1,600.50, up $33.70; Range $1,566.80-$1,608.70
Mar silver $29.572, up $1.657; Range $27.905-$29.730
Apr platinum $1,432.50, up $27.60; Range $1,405.60-$1,436.50
Mar palladium $663.50, up $7.35; Range $650.10-$671.25

*Fix for Dec. 29. There was no PM gold fix Dec. 30 or Jan. 2 for the New Year’s holiday.

Source: Matt Day (Dow Jones Newswires)

Silver Price Rises 2% As New Year Investors Take A Risk

Posted on by

The spot price of silver rose more than 2% today as investors returned to the markets with a renewed appetite for risk. Better than expected manufacturing data from China encouraged investors despite uncertainty about the global economy.

Cash silver rose as much as 2.1% up to $28.39 an before easing back slightly to $28.20 later in the day. The metal with extensive industrial applications, lost nearly 10 percent in 2011 as worries about the global economy weakened prospects of industrial metals.

“Silver is one of the more appealling trades of the new year, after a lot of positions have been emptied out,” said a Singapore-based trader.

“Now the turn of the year has happened and we will probably see silver back on radar screens for some accounts, especially those with healthy tolerance for risk.”

Gold too rebounded from last month’s losses, although analysts say it is far from re-testing all-time highs hit last September. Spot gold gained 0.7 percent to $1,576.24 an ounce, after posting a 10-percent rise in 2011.

U.S. gold rose nearly 1 percent to $1,582, before easing to $1,578.20. Technical analysis suggested spot gold could rise to $1,629 during the day, said Reuters market analyst Wang Tao.

Iran’s progress in its nuclear pursuit has gripped the oil market, and could potentially support safe haven demand in gold. But for now, gold’s move hinges on the macroeconomic conditions and changes in risk appetite.

“Gold is still trading on risk appetite, rather than acting as a safe haven,” said Ong Yi Ling, an analyst at Phillip Futures in Singapore.

China’s official purchasing managers’ index rose to 50.3 in December from 49 in the previous month, indicating a slight expansion in business activity, sending equities and industrial metals higher in Asia.

Investors will await a raft of U.S. economic data this week, including ISM Manufacturing PMI later in the day, factory orders on Wednesday and non-farm payroll data on Friday, after recent data showed that the world’s top economy was recovering.

 Precious metals prices 0301 GMT
  Metal             Last    Change  Pct chg  YTD pct chg    Volume
  Spot Gold        1576.24   10.83   +0.69      0.80
  Spot Silver        28.20    0.40   +1.44      1.84
  Spot Platinum    1403.49    9.49   +0.68      0.75
  Spot Palladium    649.99   -0.01   -0.00      0.00
  TOCOM Gold       3887.00    4.00   +0.10      0.10        68736
  TOCOM Platinum   3462.00   47.00   +1.38      1.38        15434
  TOCOM Silver       67.20    0.80   +1.20      1.20          646
  TOCOM Palladium  1570.00   -7.00   -0.44     -0.44          373
  COMEX GOLD FEB2  1578.20   11.40   +0.73      0.73         5978
  COMEX SILVER MAR2  28.20    0.28   +1.00      0.98         1013
  Euro/Dollar       1.2978
  Dollar/Yen         76.85
  TOCOM prices in yen per gram. Spot prices in $ per ounce.
  COMEX gold and silver contracts show the most active months

Source: Rujun Shen (Reuters)

Predicting Gold Prices For 2012

Posted on by

What does 2012 have in store for gold prices? Will demand push the price higher or is the gold rush over? Concerns over the euro zone continue to put pressure on investors in gold, silver and other precious metals.

If we look at gold demand worldwide we see that demand increased 6% in 2011. Demand for gold in china looks set to increase as china develops a middle class and upper class.

Also producing gold has become far more difficult as it takes about ten years to get into gold production. Increasing demand and reduced production could see a rise in gold prices for 2012.

Concerns over europe may reduce demand in the short term and gold prices may fall as a result but long term support driven by demand could mean gold ends up at the end of 2012.

Source: CNBC Video