Yesterday's sudden drop in silver prices has been attributed to a change in margin requirements set by the CME Group, parent company of the New York Mercantile Exchange and Commodity Exchange, Inc (COMEX). Wall Street Grand treats the news unemotionally for the most part. Other sources claim this is another example of silver price manipulation to protect the two banks that are most heavily short silver. Either way, yesterday's price action shows how actions other than supply and demand affect the price of SIVR.
There are a number of silver "markets". Each business day at near noon London time the London Bullion Market Association "fixes" the price of silver. Today the price was fixed at $27.53. It's an important benchmark. There are several futures exchanges offering 5000 ounce and mini 1000 ounce contracts. Here you speculate on the future price of silver. ETFs include SIVR and SLV as well as numerous leveraged varieties. The closed end fund CEF holds both physical gold and silver. One can also purchase silver coins, bars, and rounds from many sources. This is a sampling, certainly not a complete list.
Silver has more varied uses than gold. Here's an interesting chart from the Silver Institute that depicts some aspects of use and price.
The Silver Institute states--
A primary factor affecting the price of silver is the available supply versus fabrication demand. In recent years, fabrication demand has greatly outpaced mine production forcing market participants to draw down existing stocks to meet demand. As these available sources continue to decline, silver's fundamentals continue to strengthen. However, since silver is a tangible asset, and is recognized as a store of value, its price can also be affected by changes in things such as inflation (real or perceived), changing values of paper currencies, and fluctuations in deficits and interest rates, to name a few.
I'm comfortable being an owner of silver.
Silver has more varied uses than gold. Here's an interesting chart from the Silver Institute that depicts some aspects of use and price.
A primary factor affecting the price of silver is the available supply versus fabrication demand. In recent years, fabrication demand has greatly outpaced mine production forcing market participants to draw down existing stocks to meet demand. As these available sources continue to decline, silver's fundamentals continue to strengthen. However, since silver is a tangible asset, and is recognized as a store of value, its price can also be affected by changes in things such as inflation (real or perceived), changing values of paper currencies, and fluctuations in deficits and interest rates, to name a few.
I'm comfortable being an owner of silver.
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