More on silver. Looking for answers.
Dow jones offers mostly pablum. But the comment on U. S. Mint silver coin sales is a clue.
We could be right at the edge of the next mega move in silver here.
It is a time to be alert!
Quoting WSJ:
"Sales of silver coins by the U.S. mint in January are already 50% above the average monthly sales figures in 2011, a reflection of investor demand for precious metals as an alternative asset, analysts said. Demand was also likely fueled as investors saw a bargain in the metal's steep declines in late-2011."
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NEW YORK (Dow Jones)--Silver futures surged Friday to their highest level in six weeks, as hopes for steady demand for the precious metal replaced the economic gloom that dragged prices lower last month.
The most actively traded silver contract, for March delivery, rose $1.166, or 3.8%, to settle at $31.675 a troy ounce on the Comex division of the New York Mercantile Exchange, the highest ending price since Dec. 9.
About half of silver demand comes from industrial uses, making the metal more sensitive to some economic indicators than gold. Because of its conductivity and durability, silver is used extensively in electronics for cell phones, computers, automobiles, and solar panels.
The recent trend of better-than-expected economic data from the U.S. and top commodities consumer China has helped to blunt the pessimism that weighed on the silver market at the end of 2011.
"There is cautious optimism over industrial demand," said Jim Steel, precious metals analyst with HSBC. "And we have very strong coin demand, which tends to be a stronger influence on silver than the other precious metals markets."
Sales of silver coins by the U.S. mint in January are already 50% above the average monthly sales figures in 2011, a reflection of investor demand for precious metals as an alternative asset, analysts said. Demand was also likely fueled as investors saw a bargain in the metal's steep declines in late-2011.
Gold also rose on Friday, on cautious buying ahead of an expected deal between Greece and its private creditors. Negotiators are trying to ease the country's debt load and stave off a default.
Gold for February delivery rose $9.50, or 0.6%, to settle at $1,664 a troy ounce, a five-week high.
Should the agreement be finalized as expected, the euro could rally against the dollar, lifting dollar-denominated gold by making the futures cheaper for buyers using the European common currency.
"The dollar has been very strong, if we see it weaken, that's going to boost gold," said Matt Zeman, head of trading with brokerage Kingsview Financial.
Buying interest in gold could and other precious metals could be dented next week as Chinese buying slows for a week-long holiday there.
"The threat of dwindling physical demand as China celebrates the Lunar New Year is curbing participants' enthusiasm" for gold, Standard Bank analyst Marc Ground said in a note. China is the second-largest gold-consuming country after India. |
