SILVER

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(UPDATED NIGHTLY SUNDAY THROUGH THURSDAY) 

V I T A L    S T A T I S T I C S  

New York Closing Price  (JULY  Contract)
   Wednesday, June 2  (July contract) 18.315
   Tuesday  (previous trading day)  18.422
Total No. of Open Contracts (all months):
   Tuesday  (latest available) 120,951
   Prior Trading Day, 120,480
Click here for a daily chart Click here for physical Silver fundamentals. Click here (scroll down the page) or here for 24 hour spot Silver price. Click here for silver futures quote.

Latest Commitment of Traders, April 27

Long Short
Large Speculators 39%    6%
Small Speculators 21%     9%
Industry Hedgers 24% 69%
Offsetting spreads  16%

 16% 

TOTAL

100%

100%

Click here for comparative report

 

 

 

N6te-   Longer term remains negative as price remains below the all time high of $12.17 hit in May (2010) 

(COMMENTS BELOW ARE UPDATED AS OS THE U.S. CLOSE ON FRIDAY, MAY 28)

TECHNICAL FORECAST: Short term indicators remain negative as the price continues to fall, mostly in reaction to weakness in the stock and other markets and a stronger U.S. Dollar which tends to weaken the precious metals.   The silver price remains below last year's high at $21.   

Summary:  Silver was little changed today (Tuesday), still trading in the same range as the past month.   The short term indicators have improved, but longer term still tends toward negative.   The silver price is influenced by the gold price which in turn was influenced by the sharp drop in the stock market - precious metals prices are usually influenced by the U.S. Dollar.   (Visit the gold page for more details.)   Click for recent activity July silver contractClick here for 2 year chart.  Click here for nighttime futures trading quote. Click here for 24 hour spot silver price (scroll down the page)

The U.S. Dollar Index (JUNE contract) closed today (Tuesday) at .87.31 still well below the high of 92 hit in November 2005 and well below its all time record high in 2002 near 120.00).  Click here for a longer term chart of the Dollar.  

The precious metals prices have recently been influenced by the Crude Oil but now the silver appears to react more to the recent large moves in the stock market which could lead to a slower economy and reduced demand for precious metals.     

There are some similarities to the gold and silver market in 1979 and 1980 when silver soared to around $50 an ounce.  One major exception however is that U.S. interest rates were rising then as inflation hit double digits - that is not the case now as interest rates have been declining, not rising. 

The latest Commitment of Traders report (as of April 27) shows that long speculators in the silver market outnumber the shorts by 60% to 15%,  four to one.

Before the silver started to rise in the past few  years, the average open interest was usually between 70,000 and 80,000 (compared to near 128 thousand as of yesterday, last trading day). 

Keeping your money safe:

The safest place to keep your money and get the near the highest interest rates (usually but not always) is in U.S. Treasury obligations.  You can open your own account (minimum $100), free of any commissions or any other costs.   To go directly to their site, click: TreasuryDirect  (a U.S. government web site).  You will find out everything you need to know.   Interest income on U.S. Obligations are subject to Federal Income tax, but exempt from State or local income taxes.

Interest rates now (December, 2009) are near the lowest in history but are usually higher during less volatile times.

 

 

 



Silver Fundamentals - Supply and Demand:

For an easy picture of silver demand for the past 10 years (and other interesting information), click on the World Silver Institute, one of the premier industry sources (scroll down the page for more demand information).  (There has been a very noticeable change in demand for photographic use due to the use of digital cameras.)  

Following are supply and demand figures (in metric tons) for the past 7 years.  Most notable is that demand is down over 67 (metric) tonnes in the past 7 years, while supply has risen. 

Global Silver Supply:*

2000

2001

2002

2003

2004 2005 2006 2007
       
Mine Production 582.2 589.2 585.9 595.6 634.4 641.6 646.1 670.6
Global Government Sales*   78.1  87.2   71.3 82.6 61.7 68.0 77.7 42.3
Old Silver Scrap  179.2 182.7  184.9 191.6 181.1 187.3 188.0 181.6
Total Supply 839.5 859.1 842.1 869.8 877.2 896.9 911.8 894.5
= = = = = = = =
Global Silver Demand:*

2000

2001

2002

2003 2004 2005 2006 2007
Industrial Applications 377.1 338.1 342.4 351.2 367.1 409.3 430.0 455.3
Photography 219.5 213.9 205.3 196.1 181.0 164.8 145.8 128.3
Jewelry & Silverware 281.4 286.0 259.2 276.7 247.5 249.6 224.9 222.2
Coins & Medals 29.8 30.5 31.3 35.3 41.1 40.6 39.8 37.8
Total Demand 907.8 868.5 838.2 859.3 836.7 864.4 840.5 843.7

* Excludes producer hedging of future production (relatively minor); some figures may be rounded off.

As a indication of the public's interest in silver now, following are the figures published by the U.S. Mint showing the amount of silver coins sold by the U.S. Mint (in no. of ounces):

No. of Ounces

1997

3,636,000

1998 4,320,000
1999 9,008,500
2000 9,133,000
2001 8,827,500
2002  10,475,500
2003  9,153,500
2004  9,617,000
2005 8,405,000
2006 9,981,000
2007 9,887,000
2008 (thru September) 13,427,500

(Average open interest in the past decade was mostly between 75,000 and 115,000 open contracts.

Click here for a long term look at Silver (Monthly Chart) (updated monthly) or click for the Silver Weekly Chart (updated weekly).

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*Nighttime quotes are delayed, usually 30 minutes. 

* Commitment of Traders percentage figures rounded off.

** Open interest figures refer to the previous day's trading since they are not released by the exchange until the following day.