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 bounced around all week, stuck between the lower demand for industrial metals and the whims of precious metals as investors hopes for Fed stimulus went up and down with the parade of US eco data.
By the end of the week, silver was trading at 28.015 within the same range it had traded the previous Monday when the markets opened.
|
Date |
Open |
High |
Low |
Change % |
|
|
Aug 17, 2012 |
28.015 |
28.138 |
28.283 |
27.962 |
-0.43% |
|
Aug 16, 2012 |
28.135 |
27.773 |
28.235 |
27.697 |
1.30% |
|
Aug 15, 2012 |
27.775 |
27.773 |
27.958 |
27.458 |
-0.01% |
|
Aug 14, 2012 |
27.778 |
27.765 |
27.965 |
27.578 |
0.05% |
|
Aug 13, 2012 |
27.763 |
28.095 |
28.148 |
27.693 |
-1.16% |
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 August 13-17, 2012 actual v. forecast for Euro, GPB, the Franc, and USD
|
Date |
Time |
Currency |
Event |
Actual |
Forecast |
Previous |
|
Aug 14 |
8:30 |
GBP |
CPI y/y |
2.6% |
2.3% |
2.4% |
|
9:00 |
EUR |
German ZEW Economic Sentiment |
-25.5 |
-19.4 |
-19.6 |
|
|
12:30 |
USD |
Core Retail Sales m/m |
0.8% |
0.4% |
-0.8% |
|
|
12:30 |
USD |
PPI m/m |
0.3% |
0.3% |
0.1% |
|
|
12:30 |
USD |
Retail Sales m/m |
0.8% |
0.3% |
-0.7% |
|
|
Aug 15 |
8:30 |
GBP |
Claimant Count Change |
-5.9K |
6.2K |
1.0K |
|
8:30 |
GBP |
MPC Meeting Minutes |
0-0-9 |
0-0-9 |
0-0-9 |
|
|
12:30 |
USD |
Core CPI m/m |
0.1% |
0.2% |
0.2% |
|
|
Aug 16 |
8:30 |
GBP |
Retail Sales m/m |
0.3% |
0.0% |
0.8% |
|
12:30 |
USD |
Building Permits |
0.81M |
0.77M |
0.76M |
|
|
12:30 |
USD |
Unemployment Claims |
366K |
365K |
364K |
|
|
14:00 |
USD |
Philly Fed Manufacturing Index |
-7.1 |
-4.7 |
-12.9 |
|
|
Aug 17 |
13:55 |
USD |
Prelim UoM Consumer Sentiment |
73.6 |
72.5 |
72.3 |
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
Economic Highlights of the coming week that affect the Euro, GBP, CHF and the USD
|
Date |
Time |
Currency |
Event |
Previous |
|
Aug 21 |
8:30 |
GBP |
Public Sector Net Borrowing |
12.1B |
|
10:00 |
GBP |
CBI Industrial Order Expectations |
-6 |
|
|
Aug 22 |
14:00 |
USD |
Existing Home Sales |
4.37M |
|
14:30 |
USD |
Crude Oil Inventories |
-3.7M |
|
|
18:00 |
USD |
FOMC Meeting Minutes |
||
|
Aug 23 |
6:00 |
CHF |
Trade Balance |
2.25B |
|
7:00 |
EUR |
French Flash Manufacturing PMI |
43.4 |
|
|
7:00 |
EUR |
French Flash Services PMI |
50.0 |
|
|
7:30 |
EUR |
German Flash Manufacturing PMI |
43.0 |
|
|
7:30 |
EUR |
German Flash Services PMI |
50.3 |
|
|
8:00 |
EUR |
Flash Manufacturing PMI |
44.0 |
|
|
8:00 |
EUR |
Flash Services PMI |
47.9 |
|
|
8:30 |
GBP |
BBA Mortgage Approvals |
26.3K |
|
|
10:00 |
GBP |
CBI Realized Sales |
11 |
|
|
12:30 |
USD |
Unemployment Claims |
366K |
|
|
13:00 |
USD |
Flash Manufacturing PMI |
51.4 |
|
|
14:00 |
USD |
New Home Sales |
350K |
|
|
Aug 24 |
8:30 |
GBP |
Revised GDP q/q |
-0.7% |
|
8:30 |
GBP |
Prelim Business Investment q/q |
1.9% |
|
|
12:30 |
USD |
Core Durable Goods Orders m/m |
-1.1% |
|
|
12:30 |
USD |
Durable Goods Orders m/m |
1.6% |
|
|
13:00 |
EUR |
Belgium NBB Business Climate |
-11.3 |
Click here for updated Silver News.
Originally posted here
