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 ended the week pretty much within the range it was trading all week, within the mid 26-27 price range. Industrial metals were down, due to falling growth with serge towards the end of the week on promises and hopes of central banks. And precious metals skyrocketed as gold and silver became the safe haven of choice as investors moved from the JPY.
|
Date |
Open |
High |
Change % |
||
|
Jul 27, 2012 |
27.685 |
27.423 |
27.810 |
27.333 |
0.97% |
|
Jul 26, 2012 |
27.420 |
27.265 |
27.778 |
27.208 |
0.58% |
|
Jul 25, 2012 |
27.263 |
26.903 |
27.520 |
26.783 |
1.27% |
|
Jul 24, 2012 |
26.920 |
27.008 |
27.133 |
26.578 |
-0.28% |
|
Jul 23, 2012 |
26.995 |
27.203 |
27.210 |
26.627 |
-0.71% |
With global economic activity slowing, industrial demand for Silver is suffering and that is one reason why Silver prices are under pressure. However, another important reason is that Gold seems to have lost some of its safe-haven appeal, so while Gold prices have struggled, Silver has suffered too. With bullion prices having been back down close to important support levels, buying interest has improved and as we feel there is potential for Gold to become a more important safe-haven going forward, we feel there is a good chance that interest in Silver will pick-up too. Expect the dollar to struggle as the US deficit is likely to become an important issue in the US election campaign and that might worry dollar creditors.
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.
Major Economic Events for the week of July 23-27 actual v. forecast for Euro, GPB, the Franc, and USD
|
Date |
Currency |
Event |
Actual |
Forecast |
Previous |
|
Jul 24 |
EUR |
French Flash Manufacturing PMI |
43.6 |
45.6 |
45.2 |
|
EUR |
French Flash Services PMI |
50.2 |
47.7 |
47.9 |
|
|
EUR |
German Flash Manufacturing PMI |
43.3 |
45.3 |
45.0 |
|
|
EUR |
German Flash Services PMI |
49.7 |
50.1 |
49.9 |
|
|
EUR |
Flash Manufacturing PMI |
44.1 |
45.3 |
45.1 |
|
|
EUR |
Flash Services PMI |
47.6 |
47.3 |
47.1 |
|
|
GBP |
BBA Mortgage Approvals |
26.3K |
31.4K |
29.6K |
|
|
USD |
Flash Manufacturing PMI |
51.8 |
52.1 |
52.5 |
|
|
Jul 25 |
EUR |
German Ifo Business Climate |
103.3 |
104.8 |
105.2 |
|
GBP |
Prelim GDP q/q |
-0.7% |
-0.2% |
-0.3% |
|
|
GBP |
CBI Industrial Order Expectations |
-6 |
-11 |
-11 |
|
|
EUR |
Belgium NBB Business Climate |
-11.3 |
-13.5 |
-13.2 |
|
|
USD |
New Home Sales |
350K |
372K |
382K |
|
|
USD |
Crude Oil Inventories |
2.7M |
-0.1M |
-0.8M |
|
|
Jul 26 |
EUR |
GfK German Consumer Climate |
5.9 |
5.9 |
5.8 |
|
EUR |
M3 Money Supply y/y |
3.2% |
2.9% |
3.1% |
|
|
USD |
Core Durable Goods Orders m/m |
-1.1% |
0.1% |
0.8% |
|
|
USD |
Unemployment Claims |
353K |
381K |
388K |
|
|
USD |
Durable Goods Orders m/m |
1.6% |
0.4% |
1.6% |
|
|
USD |
Pending Home Sales m/m |
-1.4% |
0.6% |
5.4% |
|
|
Jul 27 |
EUR |
German Prelim CPI m/m |
0.4% |
0.4% |
-0.1% |
|
CHF |
KOF Economic Barometer |
1.43 |
1.24 |
1.15 |
|
|
EUR |
Spanish Unemployment Rate |
24.6% |
24.7% |
24.4% |
|
|
USD |
Advance GDP q/q |
1.5% |
1.5% |
1.9% |
|
|
USD |
Revised UoM Consumer Sentiment |
72.3 |
72.0 |
72.0 |
Historical:
Highest: 49.813 on Apr 25, 2011
Average: 27.592 over this period.
Lowest: 14.655 on Feb 05, 2010
Economic Highlights of the coming week that affect the Euro, GBP and CHF
|
Date |
Time |
Currency |
Event |
Forecast |
Previous |
|
Jul 30 |
30th-31st |
GBP |
Nationwide HPI m/m |
0.8% |
-0.6% |
|
7:00 |
EUR |
Spanish Flash GDP q/q |
-0.3% |
||
|
8:30 |
GBP |
Net Lending to Individuals m/m |
1.3B |
||
|
10:00 |
GBP |
CBI Realized Sales |
42 |
||
|
23:01 |
GBP |
GfK Consumer Confidence |
-29 |
||
|
Jul 31 |
6:45 |
EUR |
French Consumer Spending m/m |
0.4% |
|
|
7:55 |
EUR |
German Unemployment Change |
7K |
||
|
9:00 |
EUR |
CPI Flash Estimate y/y |
2.4% |
||
|
9:00 |
EUR |
Unemployment Rate |
11.1% |
||
|
Aug 1 |
1st-8th |
GBP |
Halifax HPI m/m |
1.0% |
|
|
7:15 |
EUR |
Spanish Manufacturing PMI |
41.1 |
||
|
7:45 |
EUR |
Italian Manufacturing PMI |
44.6 |
||
|
8:30 |
GBP |
Manufacturing PMI |
48.6 |
||
|
Aug 2 |
7:00 |
EUR |
Spanish Unemployment Change |
-98.9K |
|
|
7:15 |
CHF |
Retail Sales y/y |
6.2% |
||
|
7:30 |
CHF |
SVME PMI |
48.1 |
||
|
8:30 |
GBP |
Construction PMI |
48.2 |
||
|
11:00 |
GBP |
Asset Purchase Facility |
375B |
||
|
11:00 |
GBP |
Official Bank Rate |
0.50% |
0.50% |
|
|
11:45 |
EUR |
Minimum Bid Rate |
0.75% |
0.75% |
|
|
12:30 |
EUR |
ECB Press Conference |
|||
|
Aug 3 |
8:30 |
GBP |
Services PMI |
51.3 |
|
|
9:00 |
EUR |
Retail Sales m/m |
0.6% |
Click here for updated Silver News.
Originally posted here
