so why is silver stagnant

so why is silver stagnant? Gold keeps going up and silver hovers at $16-$17+.

Is there news that keeps coming out to deflate the price just when it start to rise?

Or is it that there are alot more people short selling silver then long?

Or possibly is it silver it pretty much attached to the economy?

Thus will only fly up in price when the economy recovers?

please answer all these questions
thanks for your time

 

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I have been wondering this a lot myself.
I think #2 would be the reason, silver costs less.... much easier to dump silver than gold emotionally speaking too haha
Wish it would dip up to 25 or 30 though! lets get some action going on here!

 

wish it would go down so I can buy more.

 

well... yeah or that.... I wish it would do something so I could either sell or buy.... this is a blah number.... for me anyways im not really motivated to sell but I dont want to buy either.

 

Many reasons:
1) Silver is often a by-product of lead/zinc/copper mining and can be sold profitably by smelters for a relatively low price.
2) Silver is far bulkier and heavier than gold for the same amount of value, thus it is harder to store and transport.
3) The use of silver in photography has been declining greatly due to the advent of the digital camera.
4) The Big Players are basically ignoring silver and concentrating on gold and other more valuable metals.

 

Silver is more speculative, but probably has more upside (or downside) potential. When comparing to gold, gold is just waaay nicer to look at......

 

The silver price is somewhat disconnected from gold because it is a tiny physical market by commodity standards, and the amount of paper speculating in silver is far greater than the actual amount of bullion available. Unless and until there is either (1) a real physical shortage or (2) the CFTC changes the rules regarding how many futures contracts can be sold without having to demonstrate the ownership of silver to deliver, the price will continue to be disconnected from other metals.

 

do you think those rules will change? or is that like asking the Government to stop spending into a deficit?

 

I hear that

 

I would expect it to go DOWN in price if the economy recovers and the dollar becomes more valuable.

 

I'm glad someone asked this question. I'm here sitting looking at silver at $17.31 right now and it's just....blah!

I mean, if it goes down, it would get me excited to perhaps buy some. If it goes up, it makes me feel that I made the right investment.

Right now it's just in the middle of the road sputtering....while gold has been launched on a rocket ship....

 

The price of silver is stagnant because perceived supply and perceived demand are in equilibrium at this price point.

 

gold is the slowest.

palladium up 84.2% since dec.31, 2008

silver up 61.1%

platinum up 51.7%

gold up 27.3% only

so why should silver go up fast again?.

 

The rate of increase/decrease of gold, or any other metal for that matter, is not interdependent on the rate of increase/decrease of any other metal. I always find it interesting when people make this type of comparison when it is really not applicable.

Again:

The price of silver is stagnant because perceived supply and perceived demand are in equilibrium at this price point.

 

The gold/silver ratio is still in the low 60's where it's been for a long time. Silver isn't isn't moving that far away from gold yet.

 

Well, it's not so bad as you think. While not precisely correct(but very close) here's what's happened so far in 2009.

Gold started 2009 at around $875/oz. It's now at $1105.80/oz for a gain of 26.4% so far this year.

Silver started 2009 at around $11.10/oz. It's now at $17.34/oz for a gain of 56.2%.

So the better question might be "Why is gold such a slacker compared to silver?"

 

The CFTC is reviewing the position limits for all commodities at this time. It would make sense to lower them for silver, but I don't know if they will do it. If they don't, we'll have to wait for shortages and delivery failures to force the price up.

 

Right, but, I would assume that as gold gets higher in price, there are those that can't afford it or not willing to risk it, so they look at the next best thing in silver since it's very affordable. Those that may want to invest in silver because they missed out, or think they are missing out on gold now...

 

I agree completely. And this results in increased demand for silver, which jacks the price.

 

Silver is an industrial metal vital to the alternative energy sector. I don't think high price silver fits very well into the current EU and US environmental agendas.