Monday, February 28, 2011
An international buying spree, or flight to safety by global investors, saw silver prices breach 30-year highs on Sunday at $33.30 an ounce.
Emerging economies of China and India are both heavy consumers of the metal, which is used in jewellery but also has its use as a raw material for industrial use.
Silver is now up 22.28 per cent in the past 30 days and according to traders, has more than doubled in the last one year, trading as it was at $16.24/oz on February 27, 2010.
Compared with this, gold prices have gone up by just a little over 6 per cent in the past 30 days and according to data sourced from goldprice.org, the yellow metal is up by just 27.75 per cent in the last one year.
This is now leading to precious metal analysts to argue that silver will see much more appreciation in the months to come, especially since the extent of global silver reserves are debatable.“Robust international demand, financial and political instability across the world, and concerns over remaining reserves all harbour well for the price of silver,” said a Mumbai-based wholesale trader of silver. “Silver is the new gold,” he said.
The Thailand Futures Exchange Plc (TFEX), part of The Stock Exchange of Thailand, will begin trading silver futures and extend trading hours for gold and silver futures until 22:30 hours, both starting in June 2011.
Silver has been gaining popularity among investors due to its upward price tendency and its relationship with gold prices, TFEX Managing Director Kesara Manchusree reported. Investors in gold can employ similar trading strategies for both precious metals. Moreover, they see more opportunities in silver because of its comparatively low price and high volatility.TFEX’ specification for trading silver futures are similar to those for 10-baht weight gold futures. This means the silver futures’ contract size is set at 100 troy ounces (approx. 3.1 kgs.), which are worth around THB90,000 (approx. USD3,000). Silver will be quoted in Thai baht (THB) per troy ounce, and its underlying price will be based on 99.9% pure silver. Final settlement will be in cash when the contract expires, instead of physical delivery. Final settlement prices for silver will use information from the same source as when gold futures are settled, i.e., London Bullion Market Association ( LBMA)......read on
(Reuters) - Ireland's victorious opposition party Fine Gael set the stage for coalition talks with its traditional partner Labour next week, after a historic election that crushed long-time rival Fianna Fail.
The parties are under intense pressure to clinch a quick deal so they can present a united front to European partners as they bid to renegotiate the terms of a bailout that some fear could bankrupt the former "Celtic Tiger" economy.
"We don't have any time to lose," Fine Gael's leader and prime minister-in-waiting Enda Kenny said after claiming victory. "The country can't borrow money, the banks can't borrow money, we are up to our necks here."
The center-right Fine Gael, swept into power on a wave of voter anger over the country's financial meltdown, is on course for a record 75-plus seats, but the pro-business, low-tax party will fall short of a majority in the 166-seat lower chamber......read on