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Silver, often called the white metal, is traded in dollars and cents per ounce, with market activity taking place worldwide and at all hours of the day. Key commodities markets like New York, London and Hong Kong are just a few locations where it changes hands. London is the center of physical silver trade, while the COMEX division of the New York Mercantile Exchange is where most paper trading is done.

Physical silver is sold on the spot market, meaning that buyers pay a specific price for the metal and then have it delivered immediately. Paper trading is done via the futures market, with participants agreeing for the delivery of silver in the future at an agreed-upon price. In such contracts, two positions can be taken: a long position to accept delivery of the metal, or a short position to provide delivery of the metal.

Paper trading might sound like a strange route to take, but it can provide investors with flexibility that they wouldn’t get from buying and selling physical silver. The most obvious advantage is perhaps the fact that trading in the paper markets means market participants can benefit from holding silver without needing to store it. Furthermore, futures trading can offer more financial leverage in that it requires less capital than trading in the physical market.

In terms of historical price action, silver’s highest average annual price was $35.12 per ounce in 2011. The rise came on the back of very strong silver investment demand, and was more than double the 2009 average silver price of $14.67.

Like other commodities, silver’s price is most heavily influenced by supply and demand dynamics. The silver price is a little unique, however, in that it’s known for its volatility. That characteristic is partially due to the fact that the metal is subject to both investment and industrial demand. In other words, it’s bought both by investors interested in using it as a store of wealth and by manufacturers looking to use it for different applications. Those applications are incredibly varied – silver has diverse technological applications and is used in devices like batteries and catalysts, but it’s also used in medicine and in the automotive industry.

Looking at supply, in 2014, the world’s top three producers of the metal were Mexico, China and Peru. Interestingly, even in those countries the white metal is usually produced as a by-product – for instance, a mine producing primarily gold might also have silver output.

As a final note, it’s important for investors to be aware that price manipulation is a major issue in the silver space. JPMorgan Chase (NYSE:JPM) was long at the center of such claims, though the case against it was dismissed last year. Most recently, 10 banks were hit in a US probe on precious metals manipulation.

While that might sound disheartening, key industry figures like silver guru David Morgan have emphasized that in reality the silver market is no more manipulated than any other market. Furthermore, in 2014 the London Silver Market Fixing stopped administering the London silver fix, which had been used for over a century to fix the price of silver. It was replaced by the LBMA Silver Price, which is run by the LBMA, CME Group (NASDAQ:CME) and Thomson Reuters (TSX:TRI,NYSE:TRI) in a bid to increase market transparency.

Klondex Reports Third Quarter Operating Results; Reiterates Full-Year Total Company Production Guidance of 213,000 – 230,000 GEOs

Klondex Mines Ltd. (TSX: KDX) (NYSE American: KLDX) (“Klondex” or the “Company”) is pleased to report its preliminary operating results for the third quarter of 2017 for its Nevada and Canada operations.

Third Quarter 2017 Operating Highlights:

Mined a total of 54,166 gold equivalent ounces, in-line with Company expectations
Produced and

Highland Copper Reports 46% Increase in the Measured and Indicated Resource Categories for its Copperwood Project, Michigan, USA

Highland Copper Company Inc. (TSX VENTURE:HI) (“Highland” or the “Company”) is pleased to announce an updated Mineral Resource estimate for its 100%-owned Copperwood Project located in Gogebic County, in the western Upper Peninsula of Michigan, U.S.A. (see Table 1 below).

Highlights:

46% increase in Measured and Indicated Resources at 1.5 billion

Falco Announces Positive Feasibility Study Results on Horne 5 Gold Project

Falco Announces Positive Feasibility Study Results on Horne 5 Gold Project

-Top Quartile Project at All-In Sustaining Costs of US$399/oz Au, net of By-Product Credits
-All-In Cost (CAPEX plus OPEX) at US$643/oz Au
-Annual Payable Gold Production of 219,000 Ounces for 15 Years
-After-Tax IRR of 15.3%
Falco Resources Ltd. (“Falco” or the “Company”)(TSXV:FPC) is pleased to announce the results of a feasibility study (the “Feasibility Study”

PEA Completed on Globex’s Bell Mountain Royalty Property

GLOBEX MINING ENTERPRISES INC. (TSX:GMX)(FRANKFURT:G1MN)(STUTTGART:G1MN)(BERLIN:G1MN)(MUNICH:G1MN)(XETRA:G1MN)(OTCQX:GLBXF) is pleased to inform shareholders that Eros Resources Corp (TSX VENTURE:ERC) has reported upon a new Preliminary Economic Assessment (PEA) on Globex’s Bell Mountain Royalty Property located in Churchill County, Nevada.

The PEA by Welsh Hagen Associates of Reno Nevada was prepared in accordance with National

Maya Gold & Silver: Zgounder Silver Mine Announces Monthly Production

Maya Gold & Silver (“Maya” or the “Corporation”) (TSX VENTURE:MYA) reports a monthly production of 42,033 ounces (1,307 Kg) of silver during the month of August 2017 at its Zgounder silver mine in Morocco. This is an improvement from the previous months but still under the Company’s objective of 45,000 to

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Weekly Round-Up: Gold Price Falls on US Tax Reform Hopes

URL: https://investingnews.com/daily/resource-investing/precious-metals-investing/weekly-commodity-round-up/