By FXEmpire.com

Introduction: Silver futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of silver (eg. 30000 grams) at a predetermined price on a future delivery date.

Some Facts about Silver

Silver is a soft, shiny and heavy metallic element with a brilliant white luster. A very ductile and malleable metal, its thermal and electrical conductivity is the highest of all known metals.

Besides being used as a store of value, other main uses of silver include applications in areas such as electronics, photography and as antiseptics.

Consumers and producers of silver can manage silver price risk by purchasing and selling silver futures. Silver producers can employ a short hedge to lock in a selling price for the silver they produce while businesses that require silver can utilize a long hedge to secure a purchase price for the commodity they need.

Silver futures are also traded by speculators who assume the price risk that hedgers try to avoid in return for a chance to profit from favorable silver price movement. Speculators buy silver futures when they believe that silver prices will go up. Conversely, they will sell silver futures when they think that silver prices will fall.

Weekly Analysis and Recommendations:

Silver closed the week trading solidly in the 28.00 price. This week silver was able to prosper on the precious metal side following gold in a slow trend up.

Industrial metals were more or less depressed as China released data over a course of two days showing a significant drop in exports and manufacturing, lessening the demand for industrial metals. Most of the metals pack traded down towards the end of the week.

Earlier in the week, while traders thought they might see some action in the EU from the ECB metals were trading on a positive note.

After the OECD revised downward global growth, the demand for metals fell.

Date

Last

Open

High

Low

Change %

Aug 10, 2012

28.053

28.055

28.280

27.557

-0.05%

Aug 09, 2012

28.068

27.993

28.182

27.837

0.29%

Aug 08, 2012

27.987

28.002

28.203

27.668

-0.05%

Aug 07, 2012

28.000

27.818

28.180

27.733

0.64%

Aug 06, 2012

27.822

27.747

27.945

27.563

0.25%

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more recent analysis and information in our weekly reports and we provide daily updates and outlooks.

Historical: From 2010 to present

Highest: 49.813 on Apr 25, 2011

Average: 28.468 over this period.

Lowest: 14.655 on Feb 05, 2010

Click here a current Silver Chart.