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 Hi-oh Silver!March 07, 2008
Get your Complimentary Commodity Trading Guide – a $20 value! Get your Complimentary copy of the ADM Investor Services’ Commodity Trading Guide. This $20 retail value includes over 350 charts and graphs, supply and demand tables, all-time contract high and low prices, government and industry report dates, and much more! This guide is a valuable addition to any trader’s library. Supplies are limited, so sign-up today to insure you receive your copy! The economic times we are facing, specifically the weakness in the U.S. dollar, has brought investors to utilize the metals market as a hedge against inflation. The U.S. dollar is clearly under pressure from a technical and fundamental perspective. Many believe the U.S. dollar will continue to tank as precious metals retain their value. Silver is and looks to remain the best value in the commodities world. In the 1970’s, silver was at an all time high of 50 dollars an ounce. On an inflation-adjusted basis, that translates into $137.14. Similarly, gold, in 1980 was priced at $890 dollars per ounce, translating into $2542.85 today. Investor and industrial demand for silver is easily outweighing a recent drop in consumer buying of the precious metal. In keeping with industry statistics, 45% of the demand for silver comes from the electronics industry. Thirty percent of demand is from the jewelry industry, twenty percent from silver’s use in photography, and just five percent from investment demand. The use of silver within photography is dropping with regard to the rising preference to digital cameras but the rising investment demand has made up for that decrease. The demand pattern is in a long-term growth mode. Silver is an industrial commodity. It is strategic and vital to growth. Demand could even be said to be slightly parabolic since population growth is parabolic and continuing silver demand has increased at a greater rate than population. A bargain this market may seem, but the only way to approach this market is with caution. Metals, like any commodity are volatile. Buying ‘value’ will limit your downside risk, which should never be ignored even when the path of least resistance is up. Those whom are apprehensive of getting in the market now at such high price levels should place buy-stops above the market in order to catch the next move higher. The trade will be worth it though. Silver, along with the other precious metals, should continue to attract additional stagflation investment as long as the U.S is confronted with inflation fears, the credit crisis, and of course, the unraveling of the U.S. dollar. If you would like more information about this article, please contact Maggie at 1.312.242.7909 or maggie.koons@archerfinancials.com . Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The views and opinions expressed in this letter are those of the author and do not reflect the views of ADM Investor Services, Inc. or its staff. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright © ADM Investor Services, Inc. Get your Complimentary Commodity Trading Guide – a $20 value! Get your Complimentary copy of the ADM Investor Services’ Commodity Trading Guide. This $20 retail value includes over 350 charts and graphs, supply and demand tables, all-time contract high and low prices, government and industry report dates, and much more! This guide is a valuable addition to any trader’s library. Supplies are limited, so sign-up today to insure you receive your copy! About the Author Maggie Koons has been in the futures industry for two years. She has been working as a broker on the trading floor of the Chicago Mercantile Exchange for the last year. Maggie grew up in the panhandle of Texas and comes from a family that is well entrenched in the agricultural world. She studied Economics and French at Kansas State University. She currently lives in the Chicago area. You can reach Maggie at 312.242.7909 or email at maggie.koons@archerfinancials.com for more information on the commodities marketplace. |
