Silver prices | Will the end of the London <b>silver price</b> fix on August 14th also be <b>...</b> |
- Will the end of the London <b>silver price</b> fix on August 14th also be <b>...</b>
- ETF Securities enters race to provide <b>silver price</b> benchmark | Gold <b>...</b>
- <b>Silver prices</b> - News 2 Gold - Blogger
- Why the <b>silver price</b> looks like it could fall by 20% - MoneyWeek
| Will the end of the London <b>silver price</b> fix on August 14th also be <b>...</b> Posted: 06 Jun 2014 02:14 AM PDT Posted on 06 June 2014 with 2 comments from readers
The alleged widespread manipulation of silver and gold prices should become more difficult after the ending of the silver price fix on August 14th with a survey of 440 London Bullion Market Association Members last week preferring an electronic, auction-based process that's tradeable with more participants. Deutsche Bank's decision to exit the silver price fix left only two banks in the process, and so a new benchmark must be found. The new silver price discovery mechanism may also set a precedent for the gold market whose four-bank price fix is now under investigation by the UK's Financial Conduct Authority. Barclays fined $44m The FCA announced on May 23rd that it had already fined one of the four banks, Barclays $44 million because one of its traders sought to influence the price setting process in 2012. It's hard to believe this was an isolated incident. Gold pressure groups allege a widespread collusion between the bullion banks and central banks to suppress gold and silver as true indicators of inflation and failing monetary policies. New price fixing regimes will challenge this cosy relationship and expose prices to new market forces. Silver prices are exceptionally depressed by any measure. No other commodity on the planet sells for less than it did in 1980, or has been as volatile in price. This smacks of a manipulated market even before the studies conducted by the like of eminent commodities economist Ted Butler which seem overwhelmingly conclusive to many experts. Cartel over So take away the cartel on August 14th and the market can test this hypothesis, and it is hard to see how this can be anything other than positive for the price of silver. Gold may also not be far behind in breaking out of its old fashioned price fix but this time silver is in the lead. Where will the price of silver go? Certainly $100 as an adjustment for inflation over 34 years would look very conservative. Posted on 06 June 2014 Categories: Gold & Silver  | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ETF Securities enters race to provide <b>silver price</b> benchmark | Gold <b>...</b> Posted: 04 Jun 2014 03:07 PM PDT By Xan Rice http://www.ft.com/intl/cms/s/0/e8fdeabc-ebe6-11e3-8cef-00144feabdc0.html One of the biggest providers of exchange traded funds has entered the race to develop a new global silver price benchmark when the 117-year-old London silver fix is disbanded in August. ETF Securities, which pioneered gold-backed ETFs and oversees $19 billion in assets, said on Wednesday that it had submitted a detailed proposal to the London Bullion Market Association, and was consulting market participants. ... Dispatch continues below ... ADVERTISEMENT Buy precious metals free of value-added tax throughout Europe Europe Silver Bullion is a fast-growing dealer sourcing its products from renowned mints, refiners, and distributors. Because of a legal loophole that will close soon, you can acquire the world's most popular bullion coins free of value-added tax throughout the European Union. You can collect your order in person at our headquarters in Tallinn, Estonia, or have it delivered in any of the 28 EU countries. Europe Silver Bullion is owned and operated by North American and European experts in selling, storing, and transporting precious metals. We have an extensive product inventory of silver, gold, platinum, and palladium, and our network spans the world. Visit us at www.europesilverbullion.com. The UK company's move highlights the strong competition to provide a new daily reference price for silver. The London Metal Exchange -- which is the world's largest bourse for base metals futures, and has previously quoted silver prices -- is working on its own electronic alternative, as is the Chicago Mercantile Exchange, which oversees the biggest silver and gold derivatives contracts. On Wednesday, Platts, the benchmark and information provider, confirmed that it had entered discussions as well. It said: "We have held conversations with the LBMA and we look forward to continued collaborative engagement regarding price discovery in the silver market." Whichever organisation is chosen to run the new silver benchmark will also be in a strong position to take over the under-fire gold fix, if the group of banks that operate this benchmark decide to phase it out. Participating in a benchmark price process would offer prestige to a company such as ETF Securities, while the exchanges would also stand to gain from transaction fees, commissions, and licensing revenue. Graham Tuckwell, founder and chairman of the ETF Securities, said his proposed solution for silver pricing would involve the London Stock Exchange's auction platform for shares and result in physically-settled transactions. "From talking to people in the market, I am absolutely confident that this will be benchmark accepted by the LBMA members," Mr Tuckwell said. "It offers real transparency and the infrastructure is already in place." Under the current system, banks run an auction system by teleconference, to set a single price that is used by silver miners, jewellers, and financial institutions to trade the metal and value their inventories. However, like the gold fix, the silver benchmark has been criticised as opaque and old-fashioned and has attracted increased regulatory scrutiny following global probes of alleged manipulation of Libor and foreign exchange indices. A decision to abandon the London silver fix from August 14 was made after Deutsche Bank failed to find a buyer for its seat on the rate-setting body earlier this year -- leaving only HSBC and Scotiabank involved. The LBMA, the trade association for London's $1.6 trillion-a-year silver market, launched a consultation in May to come up with a revised pricing mechanism. ETF Securities' proposed solution would be based on the company's silver fund, which is backed by physical metal and traded on the London Stock Exchange. Market participants wishing to buy or sell metal would deal using the LSE's electronic auction process, which lasts for five minutes and uses algorithms to calculate closing prices for shares at 4.30 p.m. each day. Transfer of silver bars between the buyers and sellers would occur two days later. Mr Tuckwell said he was still in talks with the LSE about his proposal, and that he wanted the silver auction to occur at noon, in line with current practice. People familiar with the process said that Thomson Reuters has also expressed interest in offering a silver price. The process is being closely watched by market participants elsewhere in the precious metals industry. If a new silver benchmark is seen as an improvement, it will add to calls for the 95-year-old gold fix to be scrapped. The twice-daily gold auction process is run by four banks in London. In May the UK's Financial Conduct Authority fined Barclays, one of the four fixing members, L26 million for poor controls after one of its traders used the auction to push down the gold price in order to avoid paying out on a derivatives contract. 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| <b>Silver prices</b> - News 2 Gold - Blogger Posted: 06 Jun 2014 11:17 AM PDT | Today's <b>Silver Prices</b> And Silver Investing News - Money Morning Posted: 02 Dec 2010 02:00 AM PST
| Gold, <b>Silver</b> Drop in May; US Mint Coins Mixed | Coin News Posted: 31 May 2014 11:16 AM PDT  Precious metals were mixed in May as were sales of US Mint bullion coins Gold prices declined for a fifth straight session to end at a new four-month low, sinking 3.5% for the week and 3.9% for the month. Gold for August delivery on Friday dropped $11.10, or 0.9%, to settle at $1,246 an ounce on the Comex division of the New York Mercantile Exchange. The settlement price was the lowest since gold closed at $1,239.80 an ounce on Jan. 31.
Gold's 3.9% monthly loss was the worst of the year. Gold prices gained 0.9% in April, fell 2.9% in March, surged 6.6% in February, and jumped 3.1% in January. Gold has increased $43.70, or 3.6%, since ending 2013 at $1,202.30 an ounce. Gold Outlook Majority participants in the latest Kitco News survey are bearish about gold prices next week. Eighteen participants expect prices to trade lower, 7 see prices rising and 2 see prices trading sideways or are neutral. Kitco News reports that:
Participants were divided in last week's survey by Kitco. Silver, Platinum and Palladium FuturesSilver also extended its losing streak to five sessions, and plummeted 3.8% for the week and 2.6% for the month. On Friday, silver for July delivery lost 33 cents, or 1.8%, to close at $18.68 an ounce. Silver prices turned down on the year as a result of this week's declines. The white metal is off 3.6% from the 2013 close of $19.37 an ounce. PGM futures split on Friday and for the week but climbed in May. In the Friday and weekly breakdowns:
In May, gains tallied to 1.7% for platinum and 2.9% for palladium. For the year so far, platinum has jumped 5.7% and palladium has soared 16.4%. London Fix Precious MetalsLondon precious metals fixings were mixed. When comparing the London bullion fix prices from Thursday PM to Friday PM:
For the week, palladium climbed 1% while the other metals registered declines of 3.2% for gold, 2.2% for silver and 1.3% for platinum. Monthly gains totaled 2.8% for platinum and 4.1% for palladium while monthly losses tagged in at 2.9% for gold and 1.5% for silver. US Mint Bullion Sales in MayWhile U.S. Mint bullion figures for May are not likely to change, the bureau has not officially closed the month out. CoinNews.net will later publish a more detailed analysis but as the numbers stand now:
Below is a sales breakdown of U.S. Mint bullion products with columns listing the number of bullion coins sold on Friday, last week, this week, last month, in May, and the year-to-date.
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| Why the <b>silver price</b> looks like it could fall by 20% - MoneyWeek Posted: 04 Jun 2014 01:50 AM PDT  Silver's time will come I'm getting increasingly worried about silver. Just three years ago it launched itself majestically towards the $50 mark like a rocket-powered astronaut. Ever since it's been lurching about like a directionless drunk. Now – and not for the first time – it's staring over the precipice at $18. The question is – it is going to topple over? Silver – a great investment story, but never quite delivers Silver investors are a funny bunch. Just as silver is 'gold on steroids', so silver investors are 'gold bugs on steroids'. Unlike namby-pamby gold buyers, who've sold off their gold exchange traded fund (ETF) hoardings – NYSE:GLD – by 40%, silver investors hold on and tough it out. The equivalent silver ETF has seen outflows of little more than 10%. They're more committed. Many are patriotic Americans who remember the old silver dollar with affection. Money was honest then. An ounce of silver for a day's work. They believe in their metal. It's just a matter of patience. Time will out. They point to the fact that silver, historically, is money. That it means money in some 90 or more languages – shekel in Hebrew, argent in French, plata in Spanish. They point to the fragility of the current financial system and say the answer lies in hard currency. Then they play their other trump card. Silver is finding more and more uses: as the world computerises itself, it will need endless silver. New discoveries are being made all the time about its ability to combat infection, odour, fungi, bacteria – the undead, even – so it's finding more and more applications in medicine, biotech and clothing. The world needs more silver. Then they play a third trump card. There's a massive short position in silver on the futures exchanges – it amounts to more than annual global production. That silver cannot be delivered. Sooner or later, we'll get the mother of all short squeezes and silver is going to go to the moon. There's a fourth trump card. Large silver discoveries are a thing of the past. Most silver occurs with lead and zinc, but investment in lead and zinc mining has gone the same way as Nick Clegg's popularity. All sorts of shortfalls in both base metals are projected in the not-too-distant future. The same should also apply to silver. And there's even a fifth trump card. There is about 16 times more silver in the earth's crust than there is gold, but gold is currently around 70 times more expensive than silver. If their prices moved to reflect their relative scarcity (as has been the case in the rather distant past), and the gold price remained unchanged, then silver would be nearly $80 an ounce. Sign up for a 4-week FREE trial of MoneyWeek magazine
"The only financial publication I could not be without." There's even more to it than that. Pretty much all the gold that has ever been mined still exists, but the silver has been consumed. So silver – say its most extreme believers – could actually go to parity! Like the irresistible salesman with the shiny white teeth, like the adverts for EuroMillions, silver promises riches beyond the dreams of avarice – but it rarely delivers. And the silver investor walks away shaking his head wearily, incredulously, like the England player who's just missed a penalty. Silver is at risk of plunging another 20%As I'm fond of saying, the more times a price tests a level, the more likely it is to go through it. Over the last 12 months, silver has tested the $18-19 area time after time. It can only take so many tests. If it breaks down below, we'll fall another 20% to $14 or $15 before you know it. The key area is the red zone in the chart below, which shows silver since 2010.
That would be painful for silver investors. On the other hand, if silver can manage to meander sideways over the summer months, then it will actually get through that large blue trend line I have drawn off the April 2011 high. That will be some small solace to silver investors. So what looks most likely? You would expect to see a bigger washout before the market makes its final low. ETF holdings show that the diehard bunch that are silver investors are holding on still. Perhaps a fall to $14 would see that wash-out. For now though, it's all about the $18 level. The big positive is that June is the weakest month in the year for silver. Professional traders look for a June low to buy that silver. Perhaps the low for the year is what we're seeing at the moment. I know the chief executive of one large silver mining company stops selling his silver in June for this very reason. If he can, he'll do his selling earlier in the year and later. Silver's time will come again – of that I'm sure. The story is too good for it not to. But we may have to wait quite a while. If there's one thing silver likes to do, it's frustrate. And short-term traders in particular should keep an eye on that $18 mark. • Stay up to date with MoneyWeek: Follow us on Twitter, Facebook and Google+ Our recommended articles for todayWhat the rise of the 'smart home' means for penny share investorsThe big tech giants are busy building the 'smart home' of the future, says David Thornton. That'll open up plenty of ways for investors to profit. Whatever Neil Woodford's record, there's no guarantee his new fund will performFund manager Neil Woodford has been proved his worth in the past. But that's no guarantee he'll get it right this time, says Merryn Somerset Webb. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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