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Not a Time to be Sticking your Head in the Silver Dust

Not a Time to be Sticking your Head in the Silver DustOk, so the silver price is dropping – as I said it would do here in the comments: http://www.shenzhen-standard.com/2012/04/16/silver-at-500oz-see-how-the-silver-market-is-manipulated/

It is probably apt to point out that I may be wrong regarding price expectation:  I initially said low 20’s, it may actually go single digits, but as a first low marker, it still stands.

Fortunately for those of you that are steadily accumulating silver I will be able to let you know IN ADVANCE if it’s going down to single digits or not.  Chart patterns, they’re great when you know how to use them.

For those of you who are not looking for the perfect price point to get into the market, do your usual thing, whether it be monthly purchases or whatever.  Just keep steadily buying and don’t be afraid.  Stay the course.  This is a long term investment and only part of your overall portfolio and as previously intimated could be part of your legacy planning by default if not intentionally!

News Update

Ok, so silver futures have started to be traded on the Shanghai market.  I think this is partly behind the Silver Institute issuing notice that they are doing a report on the China Silver Market.  It’s due for release in October so I will update you on its core content and relevance then.

Taken form the horse’s mouth: ‘The report will focus on China’s growing importance in the global silver industry and on identifying emerging trends that may impact the broader market over the next several years.

Twenty years ago China accounted for some 3 percent and 5 percent of global silver demand and supply, respectively.  In 2011, according to “World Silver Survey 2012″, those figures climbed to 16 percent and 14 percent, making China the world’s second largest consumer and third biggest producer of the white metal.

Many knowledgeable observers of the Chinese market believe that silver demand will continue to grow significantly over the rest of this decade, therefore increasing China’s importance to the global market.  For instance, it is noteworthy that the country switched in 2007 from being a net exporter to a growing net importer of silver bullion.

“This report will describe the dramatic rise of China as a source of both supply and demand, and analyze what the trend in these variables is likely to be over the next few years,” stated Michael DiRienzo, Executive Director of the Silver Institute.

So tell us something we don’t know, right?  It will be interesting to see if their stats add up.

Interestingly, the size of the silver market over here in China could quite conceivably knock COMEX off its throne and as a result, naturally break the back of any manipulation of the price by the big boys.  It’s costing them an absolutely obscene amount to keep bashing silver that’s for sure.



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The Contributor

Mike Briggs is a Partner and Senior Financial Consultant with the world’s largest independent financial consultancy, the deVere Group. He has a unique combination of attributes ranging from the broader aspect of general portfolio and asset management to trading the financial markets having worked as Proprietary Trader in the City of London, specialising in Technical Analysis of the Forex and Commodity Markets.

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