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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: bull_dozer who wrote (18593)	5/6/2011 5:59:09 PM
From: GROUND ZERO™	Respond to of 219548

A big win at the tables... GZ

To: bull_dozer who wrote (18593)	5/7/2011 8:49:44 AM
From: GROUND ZERO™	2 Recommendations Respond to of 219548

There are five reasons why silver prices would go up despite this correction. And they form the fundamentals: 1. Robust industrial demand 2. Bullion coin demand 3. Global inflation 4. ETF fund flows 5. Weak dollar Robust industrial demand Over the next five years, silver demand is slated to rise to 666 million ounces which would form 60% of total fabrication demand. The figure is a 36% increase over 2010’s demand of 487 million ounces; according to GFMS Ltd. The demand from the industry forms lion’s share of silver fabrication demand. The recession of 2008 made a significant dent in silver consumption on the part of the industry, but demand surged and resurgence occurred in 2010.This demand trend is expected to continue. Silver use is surging in electronic and thermal equipments. Stronger industrial demand from US and Asian countries like India and China through 2015 would keep silver prices up. Given its unique characteristics silver cannot be substituted and hence its price inelastic. Silver coin demand American Silver Eagle coins are in short supply as investors ply to secure their cash by buying the coveted coin. The American Precious Metals Exchange has warned of potential delays running into Mid-May in Silver Eagles delivery. (APMEX is offering $3 premium over spot for any Silver Eagle coins in any quantity.) Recently, director of Canada’s Royal Mint reportedly told that sourcing of silver was becoming “very difficult” with prices of the commodity climbing. Silver prices and Canadian Maple Leaf and the Silver Eagle should go a lot higher so that people would find it attractive to sell. Global inflation Inflation is surging around the globe and people are eager for a hedge which they found in silver bullion. Global inflation made silver to touch an all time high in the international market recently ($49.820 on Comex). ETF fund flows into silver Silver assets being held by the ETFs dropped 1.1% to 15,169.80 metric tons on Tuesday in the event of correction in markets. But, with the above said fundamentals being strong, it is highly unlikely that ETF fund flows into silver would dwindle. Weak Dollar Weak dollar gives buyers the necessary appetite for silver as well and the commodity surged almost 4% on the US futures market to a 31-year high of USD 47.90 recently. With the US debt at historic high levels, and QE2 in progress, the chances are that dollar will continue to remain weak unless the interest rates are hiked in US. But, this is a remote possibility. Back in the past,.silver, touted the poor man's gold, was reportedly depressed artificially for a while by certain quarters. But strict norms, later effected changed the horoscope of the commodity. Fundamentals, rather than speculation began to drive silver. commodityonline.com GZ