Tuesday, February 1, 2011

The Silver Market

These graphs speak for themselves. Hedging is when a producer of Silver pre-sells to the market at a price they believe will secure profits. De-hedging is when they reverse that transaction. --producer of silver are doing this because they believe the price will rise and they don't want to be left out those potential profits.


These two Charts below are a bit out of date (until 2009) but does show the steady increase in demand from the investment community. 2010 was even stronger (see the SLV ETF graph later on this post).



Below shows the holdings of the worlds largest Silver Trust ETF, you can see clearly here the rising demand into 2010.


I'll have some graphs next on Gold.

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