Here's why you should start protecting your wealth and invest in Silver from GCIL Bullion, the best bullion dealer in Cardiff
The metal with the best return this year of any in the Bloomberg Commodity Index is poised for more gains, investors, traders and market data suggest.
“Silver has the best-looking chart among all the commodities,” said Andy Pfaff, who as chief investment officer for commodities at MitonOptimal Group in Cape Town increased his allocation to the metal over the past two weeks. “When silver moves, it really, really moves, and everyone wants to be on the right side of that trade.”
The metal is up more than 12 percent in the last two weeks after underperforming gold in the first quarter on concerns slow Chinese growth would curb demand in the biggest consumer of commodities. While both are precious metals, silver has more uses in manufacturing. Silver traded near $17 an ounce on Wednesday.
Following are charts that suggest the possibility of further gains.
Silver rallied Tuesday as big orders triggered automated short covering or stop losses, in which negative bets are closed, according to investors including Afshin Nabavi, head of trading and physical sales at MKS (Switzerland) SA.
Volumes on the Comex in New York reached about triple the 100-day average at times during the day. “We’ve seen some good fund buying that triggered stops through the recent highs in silver,” said David Govett, head of precious metals at broker Marex Spectron Group in London.
Investors have been flocking to exchange-traded funds backed by silver, with holdings rising 5.6 percent this year to 19,904.1 metric tons, according to data compiled by Bloomberg as of Monday. That’s within 2 percent of a record 20,182.2 tons in October 2014.
“There seems to be a bit of momentum building in silver,” Adrian Ash, head of research at online-trading service BullionVault, said by phone from London. “When hot money is looking for a hot trade, silver is increasingly where they place their bets.”
Money managers last week increased their net-long positions by 30 percent to 54,885 contracts, the highest since comparable Commodity Futures Trading Commission data begins in 2006.
The ratio of gold to silver prices fell to the lowest level since October on Wednesday after peaking in February at the highest since 2008. It may revert back further, according to dealers such as Mark O’Byrne, a director at brokerage GoldCore Ltd. in Dublin.
Technical indicators are showing buy signals. The moving average convergence-divergence indicator has held above the so-called signal line since April 11, suggesting “there is more upside to silver,” said Gary Christie, a senior technical analyst at Trading Central in Ottawa.
For more information about Silver and protecting your wealth speak to Fred of GCIL Bullion as recommended on thebestof Cardiff
Member since: 10th July 2012
Hey, welcome to our latest news and gossip from thebestof Cardiff - We welcome any bloggers, news, events; mainly the charity and community stuff that has benefit to all. For business - email firstname.lastname@example.org...
The following Cookies are used on this Site. Users who allow all the Cookies will enjoy the best experience and all functionality on the Site will be available to you.
You can choose to disable any of the Cookies by un-ticking the box below but if you do so your experience with the Site is likely to be diminished.
In order to interact with this site.
To help us to measure how users interact with content and pages on the Site so we can make things better.
To show content from Google Maps.
To show content from YouTube.
To show content from Vimeo.
To share content across multiple platforms.
To view and book events.
To show user avatars and twitter feeds.
To show content from TourMkr.
To interact with Facebook.
To show content from WalkInto.