Silver Price To Stay On Upward Climb Despite CME Margin Hikes, Gold Taking Off Again

May 10, 2011 - PRLog -- A sell-off in gold final week continues to be observed by numerous traders as extreme, and also the metal has rebounded to date this week. Some traders could take a look at final week's sharp declines as an chance to probably purchase gold at much more appealing costs, instead of in the starting of the reversal in costs. The financial debt scenario within the EU continues to linger more than the marketplace numerous months following the Greek crisis caught numerous off guard, and it's now completely feasible the nation could cease to become component with the pan-European group of nations, both forcibly or of its personal accord. S&P downgraded Greece once again, and Moody's has put its ratings on review for a feasible downgrade. The analysts at S&P do not see how Greece could reduce its financial debt without a complete restructuring. Markets are also worried about Portugal, Spain, Ireland and probably Italy. Meanwhile, concerns about slower economic growth in Western nations could prolong the low interest-rate environment beyond current forecasts. This makes fixed-income instruments less attractive and could result in weakness within the equities markets. These conditions can be observed as favorable for gold. Check Out Silver & Gold Trading Ideas Now! http://www.silver-dollar-values.com/Selling-Gold/

Silver prices are displaying signs of recovery this week and ETF Securities, sponsor of the number of physically backed exchange-traded funds, suggests the upturn will continue through this week. Last week’s plunge, partly due to higher Comex futures margins that sent the spot price plummeting from near $50 an ounce in the end of April to around $35, has halted for now. William Rhind, managing director of ETF Securities U.S., states that barring further Comex margin increases, silver prices will likely revert to being driven primarily by perceptions with the resilience with the global economic recovery, as investors consider advantage with the reduction in price.

Speculators had to come up with much more money to finance each current and new trade and this caused the marketplace to collapse. There is no conspiracy to lift the margin requirement for silver. The clearinghouses have a financial and business agenda. They must be assured that their clients can fund the increasingly expensive positions. Raising the margin is prudent business practice. Check Out Silver & Gold Trading Ideas Now! http://www.silver-dollar-values.com/Selling-Gold/

Nevertheless, some traders are asking if this is not also similar to marketplace manipulation where costs are impacted by the activity of participants to achieve a desired effect. They argue that a gradual increase in margin is fair and reasonable, but the multiple increases in margin requirements within the final seven days smacks of the much more active intervention within the marketplace in a way designed to impact costs.

The final week saw multiple rises within the margin required for silver trades. Traders with open positions had to come up with increasing amounts of cash to keep the position open. These margin calls made it much more difficult for traders to fund their positions. Numerous traders had little option but to market, and their selling cascaded through the silver marketplace crashing costs to below $36 an ounce. Now is a great time to invest in silver and gold while the prices are still relatively cheap. Buy gold, buy silver today and rest assured tomorrow that your assets are safe. Check Out Silver & Gold Trading Ideas Now! http://www.silver-dollar-values.com/Selling-Gold/

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