NASDAQ reported that the ETFS Physical Palladium Shares (NYSE:PALL) is up 3.4 percent this year, unlike the SPDR Gold Shares (NYSE:GLD), which has slipped 22.4 percent, and the iShares Silver Trust (NYSE:SLV), which is down 35.3 percent year to date.
The Bedford Report released research on Silvercorp Metals (NYSE:SVM,TSE:SVM) and an outlook for the iShares Silver Trust (NYSE:SLV).
Since the news on Sunday of Osama bin Laden’s death, many commodities, especially precious metals, has been marked by high volatility. Will the killing of bin Laden have long term effects on the US and World economies?
By Vivien Diniz
In uncertain times, investors shy away from bold assets and play it safe with what they know to be solid; silver and gold. With the markets rattled over the debt crisis, silver and gold prices are rising in response.
Silver ETFs have widened the playing field for many previously locked-out investors. On the flip side, this investment innovation may pose real danger: quick and dirty liquidation of silver holdings leading to a flood of physical silver onto an already oversupplied market experiencing declining levels of demand.
ETFs have generated interest among investors, who purchased $277 billion of commodity ETFs and related securities by the end of 2009, attracted primarily to the potential of low costs, stock-like features and relative tax efficiency as well as profiting from exposure to raw materials’ global demand.
While investor demand for silver is credited for such a bullish outlook amongst analysts, a new report from VM Group/Fortis Bank Nederland shows industrial demand, especially from new uses and increased demand from China, will have a significant impact on silver prices going forward.
Fearing the rise of inflation due to the reluctance of central banks to change historically low interest rates, investors are looking to silver. This practical guide shows newbie investors how to enter the silver market in all forms, either in bullion, ETFs, futures contracts, or through direct investment in mining
While the contagion of fear in the markets is providing silver with a much needed boost this week, ongoing economic problems around the world will eventually weigh on industrial demand.
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