Silver prices | Spike for <b>Silver Prices</b> Ahead? This Options Activity Suggests So |
- Spike for <b>Silver Prices</b> Ahead? This Options Activity Suggests So
- Today's <b>Silver Prices</b> And Silver Investing News - Money Morning
- <b>Silver</b> ETFs Look to Regain Lost Luster | ETF Trends
| Spike for <b>Silver Prices</b> Ahead? This Options Activity Suggests So Posted: 08 May 2014 10:55 AM PDT After rising as much as 16% earlier this year, silver prices are now nearly unchanged year to date. They're up just 0.2%, while gold has gained 7.2%. Silver's option activity sits near a decade low. That's highly unusual - and won't last. In fact, the low activity suggests things are about to change for the white metal. Silver Prices Soar After Low Options ActivityAccording to Mike McGlone, head of U.S. research for ETF Securities, 30-day silver options volatility is roughly around 12% as of Tuesday's close. While it has ticked up a hair from the 10-year low logged last week, it remains well below the historic average of around 30%. "Volatility is always mean-reverting, so when volatility is that low, it's ready for a big move," McGlone told Kitco. "I think the path of least resistance is up." That last time silver volatility dipped into the mid-teens was early 2013, right before silver prices spiked in April. The silver price hit just under $28 an ounce. The time before that was in 2010 when silver dipped to $17.94 in August, just ahead of silver's 2011 breakout to a record high of $48.70 on April 28. Knowing when the big move up is likely to happen is key - and we have a few more signs that it's happening soon. How to Follow the Clues to Higher Silver PricesTelling signs that the silver price is poised to bounce include an unusually high gold/silver ratio, robust retail demand, and strong fabrication use. And, all those signs are aligning for an upward move in the silver price. Take a look:
The silver price could remain range-bound near term. Data from The Commodity Trader's Almanac shows silver tends to peak of trend lower in May, reaching a bottom in late June. That sets the stage for a nice buying opportunity for savvy silver investors. As Money Morning Global Resource Specialist Peter Krauth explains, a lower silver price lures investors in, and the buying triggers a price boost. At last check, spot silver was trading at $19.32 an ounce, down $0.08, or 0.41%. Today's Top Story: The real skirmish in Ukraine is not being covered by the mainstream media. And these are the companies that may decide the fate of the country... Related Articles:
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| Today's <b>Silver Prices</b> And Silver Investing News - Money Morning Posted: 02 Dec 2010 02:00 AM PST  It's like Money Morning Global Resources Specialist Peter Krauth has been saying: A low silver price doesn't scare away investors; it draws them in. As silver prices slumped 36% in 2013, retail investors took advantage of the dips and sent physical silver demand up 13% to an all-time high, according to World Silver Survey 2014. Here's what else is moving demand for physical silver today... After rising as much as 16% earlier this year, silver prices are now nearly unchanged year-to-date. They're up just 0.2%, while gold has gained 7.2%. The silver price isn't the only number that's lagging... Silver's option activity sits near a decade low. That's highly unusual - and won't last. In fact, the low activity suggests some big changes ahead for the white metal… The silver price was modestly higher Friday amid mounting geopolitical tensions that have stoked bullish options activity. In early afternoon trading, spot silver was last up $0.03, or 0.15%, at 19.78 an ounce. The metal traded as low as $19.57 and as high as $19.92 in another volatile session. The white metal went on a rollercoaster ride Thursday, but here's why silver's in the bulls' corner moving forward... Silver prices spiked some 2%, or $0.51, to $20.49 an ounce intraday Thursday before closing the session up $0.37 to $20.14 an ounce. But what we care about is the big picture. Here's what's ahead for silver... Spot silver prices rose $0.07, or 0.4%, to $19.86 an ounce midday Monday as precious metal traders and investors gear up for a busy week ahead. Market participants remain guarded, with a spate of U.S. economic data flooding in as the week wears on. Capping the busy week will be Friday's closely watched March jobs report. Meanwhile, Monday caps the end of 2014's first quarter. So let's take a look at silver... Amid frenzied demand to buy and store silver, a Singapore retail supplier of coins and bars opened a new 600-metric-ton vault on Monday. The sizable Silver Bullion Pte. Ltd. storage facility can hold some $390 million worth of silver (at Friday's prices of $20.33 per ounce). Known as The Safe House, the new facility is located west of Changi International Airport. At present, it keeps some 37 tons of silver, mostly for its retail clients, behind a secure 2.5-ton stainless door. Here's what that means for investing in silver... Silver prices today (Friday) were modestly higher as bargain hunters stepped up to buy the dips. In early trading, spot silver last traded up $0.11 to $20.45. It's been a volatile and punishing week for silver. In morning trading Thursday, silver futures for May delivery slumped 2.3% to $20.355 an ounce, on pace for the biggest drop since March 7. That put white metal prices heading for their fourth consecutive day of losses, the longest streak since Nov. 13... Buoyed in early trading by a flight to safety amid simmering turmoil between Ukraine and Russia, silver prices today are showing signs of life. In morning trading Friday, the price of silver rose $0.62, or 2.44%, at $21.89 an ounce. While the white metal slipped $0.148 Thursday to finish the session at $21.25 an ounce, the dip came on mild profit taking. Silver had a stellar showing Wednesday, ending up 2.66%, or $0.55, at $21.33. Here's why this is an important catalyst for higher silver prices over the week... Even though silver prices today (Friday) are down a relatively flat 0.59%, they're up more than 10% so far in February, and the rally won't end here. This is where silver prices are heading in early 2014 - and how they're getting there... Despite lower silver prices, Vancouver's Pan American Silver Corp. (Nasdaq: PAAS) reported strong earnings yesterday (Thursday) that sent its shares soaring 6.28% over the day - and up to an 8.35% gain through Friday. At first glance, Pan American's story may appear grim. In 2013, silver prices fell 35.7%, and Pan American shares fell right alongside, for a remarkably similar 35.57% loss across the year. Thursday's earnings posted a net loss of $293.1 million, or $1.94 per share, during Q4 2013. A number of penny stocks showed investors some love today (Friday) with huge share-price climbs. While the Dow Jones Industrial Average rose just under 1% by 2 p.m., these hot penny stocks were up double digits. Following are five of Friday's biggest low-priced movers. Silver, like gold, has had a difficult year. After sliding 36.3% in 2013, the precious metal ended January down 4%. But at the same time, there have been signs that a turnaround is in the offing. Yesterday silver edged up 1%, and It now appears to be on the brink of a major rally... Let's face it, 2013 was rough on silver. The precious metal started out the year at $31, and ended at $19.50, continuing an overall slump dating back roughly to mid-2011. That, however, obscures a massive run, like gold, that silver embarked on in 2001 when it was near $4, eventually topping out around $49 in April 2011. At its peak it generated a return of 1,091%. Heading into 2014, I've pinpointed a number of key drivers - some often missed - that say silver may be poised for another spectacular run... Precious Metals News: Silver prices today could slip if the December jobs report comes in higher than expected. Silver prices traded in tight range Thursday ending the day a touch higher, up $0.076, or 0.31%, at $19.61 an ounce. But the price of silver fell Wednesday after strong ADP data. The ADP report showed 238,000 jobs were added in December, above the 200,000 expected. The U.S. dollar index edged higher following the ADP report, and metals were clipped. After a solid start this year, silver prices have since slipped... We all have our reasons for following Apple. I track it because this tech behemoth is a massive global consumer of metals - base, rare earth, and precious. And right now, Apple is giving us some surprising indications that the demand for silver is much higher than its current price would have us believe. Here's how the rumors flew... |
| <b>Silver</b> ETFs Look to Regain Lost Luster | ETF Trends Posted: 29 May 2014 10:14 AM PDT  The iShares Silver Trust (NYSEArca: SLV) and the ETFS Physical Silver Shares (NYSEArca: SIVR) have posted double-digit losses over the past three months, but silver's recent struggles could give way to higher prices in the months ahead. "Often viewed by investors as a leveraged play on gold, silver is an attractive longer term portfolio diversifier in our view, with a low correlation to most other major asset classes yet offering protection from currency debasement risk and inflation," said ETF Securities in a new research note. However, it is silver's perceived correlation to gold that has plagued the white metal. The SPDR Gold Share (NYSEArca: GLD) is down 5% over the past 90 days and with Comex gold futures flirting with $1,250 per troy ounce, some market participants are saying $1,200 an ounce could be right around the corner. [Gold Miners ETFs Struggling Again] Silver remains inexpensive relative to gold as the gold/silver ratio currently resides at its highest levels since 2010. "For the few years prior the 2008 crisis, the gold/silver ratio hovered around 50. Since 2008, the ratio has reached a peak near85 and low near 32. With a median near 59, as the global economy continues to recover, the 50 area in the gold/silver is an area that is likely to be revisited in our view, with silver price upside the key driver," said ETF Securities. While investors have not been shy about dumping gold ETFs when the yellow metal's price declines, silver demand remains robust. Identifiable investment in silver surged 75% last year, led by India, according to ETF Securities. India, previously the world's largest gold consumer, imposed an import tariff on gold as a way of lowering its current account deficit, prompting gold consumers there to favor silver. [Gold ETFs Look to India for Help] GLD has seen second-quarter outflows of $1.1 billion, but SLV and SIVR have taken in a combined $53.7 million this quarter. Silver's waning volatility could also be a seen the metal is nearing a rally. "History indicates the recent decline in silver price volatility to the lowest levels in over a decade(at the beginning of May), as measured by 30-day volatility, may be a precursor to a strong price move. In our view, downside risk is limited with industrial demand picking up and supply in decline. With the silver price less than half its 2011 peak and futures shorts already elevated, we believe the next strong trend price move is likely to be up," according to ETF Securities. iShares Silver Trust ETF Trends editorial team contributed to this post. Tom Lydon's clients own shares of GLD and SLV. The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product. |
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