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 (e.g. 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 up at 28.638 and for the week gained close to 0.26 cents. Silver followed just steps behind gold in this week’s trading.

Date

Last

Open

High

Low

Change %

Jun 15, 2012

28.638

28.560

28.805

28.495

0.26%

Jun 14, 2012

28.563

28.825

29.075

28.170

-0.92%

Jun 13, 2012

28.828

28.815

29.087

28.705

0.06%

Jun 12, 2012

28.810

28.373

29.013

28.333

1.53%

Jun 11, 2012

28.375

28.910

28.950

28.263

-1.88%

Markets shifted from the safety of the USD to gold as eco data and the possibility of Fed intervention depressed the USD. As silver moves in tandem, it also enjoyed the new strength. The FOMC meeting is this coming week on the 19th and Greek elections are this weekend, so we might be in for a wild ride in the beginning of the week

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:

Highest: 49.813 on Apr 25, 2011

Average: 27.592over this period.

Lowest: 14.655 on Feb 05, 2010

Click here for updated Silver News.

Originally posted here