So Why Is Hong Kong Mercantile Exchange A New Ball Game Around Town For Silver Investing?

July 31, 2011 - PRLog -- If you're nevertheless bearish on long-term silver prices, you’d better reconsider your stance. Dollar-denominated Chinese silver futures had been scheduled to start trading around the Hong Kong Mercantile Exchange early on July 22, 2011. This enhancement will grant Asian traders immediate entry to the metal and can dull the U.S. prominence in silver-bullion investing. It's also very bullish for long-term silver prices.

A fresh Catalyst for Silver Prices starts now in Hong Kong. The Hong Kong Mercantile's entry in to the silver-futures market is truly a game-changer - for a number of elements. To start with, the emergence of the fresh market participant will effectively neuter U.S. elitists like those in the Chicago Mercantile Exchange. Go to http://silver-dollar-values.com for more lucrative silver and gold suggestions.

I especially point out the CME due to the reality that trade unilaterally elevated margin requirements on silver by nearly 100% in a mere 8 days this spring - subsequent when silver prices had elevated approximately 150% in between late August as well as the end of April. The CME motion helped set off silver prices to plunge by 30% from its present highs.

Longer-term, and most likely even more considerably, this transfer will help traders in China and India buy into silver bullion. In actuality, this might be the first time Chinese and many Asians in the bordering markets can purchase silver-futures contracts and, by implication, consider delivery. Historically, traders in these markets had to purchase CME-based contracts that are standardized and traded by way of the Hong Kong Futures Exchange, in accordance utilizing the Chicago-based CME. Read http://silver-dollar-values.net for more lucrative silver and gold suggestions.

Just in case you are not acquainted with them, futures contracts require the purchasers to become prepared to take ownership and delivery as soon as the agreement comes due. Like all other agreements, futures are legally binding contracts for delivery of the root asset, in this scenario silver, at an agreed-upon long-term date as well as at an agreed-upon price. Further, they are standardized by futures exchanges regarding amount, quality, time and place of delivery.

Only the price changes, that's why futures contracts can offer more financial versatility, leverage and financial integrity than purchasing and selling the underlying physical property on their own.

Asia is presently turning into a bigger component in the silver market. From 2008 to 2010, silver need jumped 17% globally - like 67% in China alone (reaching 7,495 metric tons), according to the Hong Kong Mercantile. In actuality, China accounted for nearly 23% of worldwide silver usage last year. That tends to create the brand new futures contracts an even bigger deal than most traders have but to comprehend. Now will be the best time to purchase silver prior to the silver prices skyrocketing. Go to http://www.silver-dollar-values.com for more lucrative silver and gold suggestions.

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