See How Silver Is Hanging On To Its First Quarter Lead Directly At Precious-Metal.org

April 7, 2010 - Silver was quiet on the first week of the second quarter after it made a noticeable splash at the end of the first quarter. It succeeded, however, in preserving its gains with $18 as of about 11:00 a.m. HK time versus $17.89 reported two days ago. It was a small lead, nevertheless it was a lead.

Prices had been volatile but it was expected that silver would hang on until the end of trading day. Should it succeed in keeping the lead, it would be more than enough for investors to keep their faith in silver to make up the rest of the week. After all, silver had been tagged as the potentially best performer among precious metals.

Silver’s ability to rebound, even surge, had been demonstrated several times. It won’t be surprising if it demonstrates it again. The fundamentals are intact and the situation fertile, as if custom-made, or silver.

Let’s consider the issue of supply and demand. The demand for silver remains growing while the supply of silver gets depleted. Aside from being a precious metal, silver is also an industrial metal. Its industrial uses are varied and numerous. Silver is a favorite because of its unique physical properties unmatched by other metals. The large and growing consumption of silver by various industries continue to bring the supply of silver to an almost critical level. About 95 percent of available silver is fed to hungry industries. Only about 300 million ounces of this metal is available worldwide. The supply used to be 12 billion ounces in 1900.

The law of supply and demand is already in play, felt and sensed by experienced investors who have developed a fine-tuned sensitivity to opportunities for profit. 

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Danny Burns

Senior Staff Writer - Precious-Metal.org