Introduction: Silver futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific
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 and looked to be headed below the 30.00 mark but was able to close the week at 30.43 following cues from gold and the precious metals which rebounded on Friday as market sentiment turned to risk off and safe trades. Industrial metals remained weak as growth and the US recovery are up in the air as US policymakers seem to have hit a wall in recent negotiations.
Date |
Last |
Open |
High |
Low |
Change % |
Dec 21, 2012 |
30.043 |
30.015 |
30.315 |
29.673 |
0.09% |
Dec 20, 2012 |
30.017 |
31.110 |
31.273 |
29.660 |
-3.53% |
Dec 19, 2012 |
31.115 |
31.813 |
31.862 |
31.033 |
-2.22% |
Dec 18, 2012 |
31.820 |
32.313 |
32.597 |
31.413 |
-1.54% |
Dec 17, 2012 |
32.317 |
32.373 |
32.483 |
32.090 |
-0.18% |
Fiscal cliff negotiations continue to drag on after Speaker of the House of Representatives John Boehner was unable to muster enough votes within his own party over an alternative plan of spending cuts and tax hikes known as “Plan B.” At a press conference Friday morning, Boehner reiterated the need for political leaders to come together. Congressional leaders leave Friday for the Christmas holiday, but they can come back Dec. 27 and continue to discuss alternatives.
I would like to take this time to express my best wishes to all of my readers during this holiday season and extend the best hopes for profitable trading in 2013.
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 December 17-21 actual v. forecast for Euro, GPB, the Franc, and USD
Date |
Time |
Currency |
Event |
Actual |
Forecast |
Previous |
Dec. 17 |
00:01 |
GBP |
Rightmove House Price Index (MoM) |
-3.3% |
-2.6% |
|
|
13:30 |
USD |
NY Empire State Manufacturing Index |
-8.1 |
-1.0 |
-5.2 |
|
14:00 |
USD |
TIC Net Long-Term Transactions |
1.3B |
25.0B |
3.2B |
Dec. 18 |
09:30 |
GBP |
Core CPI (YoY) |
2.6% |
2.7% |
2.6% |
|
09:30 |
GBP |
CPI (YoY) |
2.7% |
2.6% |
2.7% |
|
09:30 |
GBP |
PPI Input (MoM) |
0.1% |
-0.1% |
0.1% |
|
09:30 |
GBP |
CPI (MoM) |
0.2% |
0.2% |
0.5% |
|
09:30 |
GBP |
PPI Input (YoY) |
-0.3% |
-0.5% |
0.1% |
|
13:30 |
USD |
Current Account |
-107.5B |
-103.4B |
-118.1B |
Dec. 19 |
09:00 |
EUR |
German Ifo Business Climate Index |
102.4 |
102.0 |
101.4 |
|
09:00 |
EUR |
German Current Assessment |
107.1 |
108.0 |
108.1 |
|
09:00 |
EUR |
German Business Expectations |
97.9 |
96.3 |
95.2 |
|
11:00 |
GBP |
CBI Distributive Trades Survey |
19 |
25 |
33 |
|
13:30 |
USD |
Building Permits |
0.899M |
0.875M |
0.868M |
|
13:30 |
USD |
Housing Starts |
0.861M |
0.873M |
0.888M |
Dec. 20 |
09:30 |
GBP |
Retail Sales (MoM) |
0.0% |
0.3% |
-0.7% |
|
09:30 |
GBP |
Retail Sales (YoY) |
0.9% |
1.5% |
0.8% |
|
13:30 |
USD |
Initial Jobless Claims |
361K |
357K |
344K |
|
13:30 |
USD |
GDP (QoQ) |
3.1% |
2.8% |
2.7% |
|
13:30 |
USD |
Continuing Jobless Claims |
3225K |
3199K |
3213K |
|
15:00 |
USD |
Existing Home Sales |
5.04M |
4.87M |
4.76M |
|
15:00 |
USD |
Philadelphia Fed Manufacturing Index |
8.1 |
-3.0 |
-10.7 |
Dec. 21 |
07:00 |
EUR |
GfK German Consumer Climate |
5.6 |
5.9 |
5.8 |
|
09:30 |
GBP |
Business Investment (QoQ) |
3.8% |
3.5% |
3.7% |
|
09:30 |
GBP |
Current Account |
-12.8B |
-14.0B |
-17.4B |
|
09:30 |
GBP |
GDP (QoQ) |
0.9% |
1.0% |
1.0% |
|
09:30 |
GBP |
GDP (YoY) |
0.0% |
-0.1% |
-0.1% |
|
13:30 |
USD |
Core Durable Goods Orders (MoM) |
1.6% |
-0.2% |
1.9% |
|
13:30 |
USD |
Core PCE Price Index (MoM) |
0.0% |
0.1% |
0.1% |
|
13:30 |
USD |
Durable Goods Orders (MoM) |
0.7% |
0.2% |
1.1% |
|
13:30 |
USD |
Personal Spending (MoM) |
0.4% |
0.3% |
-0.1% |
|
14:55 |
USD |
Michigan Consumer Sentiment |
72.9 |
74.7 |
74.5 |
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 |
Forecast |
Previous |
Dec. 28 |
07:45 |
EUR |
0.1% |
-0.2% |
|
|
07:45 |
EUR |
0.2% |