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 followed the cues from gold this week trading at 28.88 down 0.290.

On the commodity front, Euro zone crisis has taken the center stage once again. Slowdown issues have moved from the back burner of the market place to the front burner. We have seen steep corrections coming out in commodities in past few trading sessions. The greenback has benefited recently on fresh safe-haven demand due to the EU situation and now is trading above the level of 80. If it sustains above this level, then commodities may correct further. Fresh weakness in export activities in China is another major concern for the market. Bundles of important economic data such as GDP data of Germany, Euro zone and Japan, German Zew Survey, CPI and advance retail sales data of US, jobless claim data of UK, CPI of Euro zone and Canada, Minutes of FOMC meet will keep the investors on toes this week.

Silver traders are the least bullish in five weeks after the metal erased almost all of this year’s gains, as political turmoil in Europe and mounting optimism about the U.S. economy drives investors to favor the dollar. Comex Silver is currently trading at $28.84

Upcoming Economic Events that affect the CHF, EUR, GBP and USD

May 14

07:00

EUR

Finnish CPI (YoY)

2.90%

08:15

CHF

PPI (MoM)

0.3%

08:30

EUR

Dutch Retail Sales (YoY)

0.90%

10:00

EUR

Industrial Production (MoM)

-0.2%

0.5%

May 15

06:30

EUR

French CPI (MoM)

0.8%

07:45

EUR

French Non-Farm Payrolls (QoQ)

-0.1%

09:30

GBP

Trade Balance

-8.8B

May 16

09:30

GBP

Average Earnings Index +Bonus

1.1%

09:30

GBP

Claimant Count Change

3.6K

10:00

EUR

CPI (YoY)

2.6%

2.6%

10:00

EUR

Core CPI (YoY)

1.6%

11:00

EUR

Portuguese Unemployment Rate

14.00%

Originally posted here