article about silver technicals

[Bossobass]

No opinions, just facts:

The Silver Price continues to move with the price of gold, not because they have the same demand and supply fundamentals or there is the same quantity of the metal available, but because investors and users perceive that the silver and Gold Prices reflect the state of the current global monetary system. Such coordinated movements are saying that both metals are not being priced themselves. They are both pricing the monetary system and its prospects, as they have done for millennia. The huge growth of the investment side of the two metals is confirmatory evidence of this.

Last year, in 2010, China was a net importer of more than 3,500 tonnes of silver. Incredibly, Chinese net imports of silver surged four fold in just one year from 2009 to 2010. We fully expect this growth of demand from that source to continue in 2011 and possible for the next decade.

For decades we saw 'Official selling' of silver as three governments sold off their stockpiles of silver (that had once been the coinage of the land). The three countries were India, China and Russia. Today there is a negligible amount of silver sold by these three previously large suppliers. Such a withdrawal of large supply lines has ensured demand outweighs supply. There is little likelihood of these suppliers re-appearing.

While September is typically one of the US Mint’s slower months for silver bullion sales, monthly sales for the current year rank as the second highest total to date. Only January 2011 experienced higher sales when 6,422,000 ounces were sold, which also represented an all time monthly sales record.
For the year to date, American Silver Eagle sales have now reached 33,411,500. The record for annual sales is 34,662,500, which was achieved in 2010.

Year-to-date sales by the end of the month stood at 33,411,500, or 1.251 million shy of surpassing the best year for the coins, achieved in 2010 with the annual record of 34,662,500. The top annual spot will be overtaken sometime in October — likely this week, based on current demand trends.

Other than December 1986 (when smart people gobbled up silver after having sold near the all-time peak), do we see a trend?

RANK MONTH SALES
1 January 2011 6,422,000
2 September 2011 4,460,500
3 November 2010 4,260,000
4 December 1986 3,696,000
5 August 2011 3,679,500
6 May 2011 3,653,500
7 May 2010 3,636,500
8 January 2010 3,592,500
9 June 2011 3,402,000
10 March 2010 3,381,000

This is me & Seraphim, et al vvv

Once the price of silver tumbled, however, from around $40 to $30 an ounce, sales of the American Eagle Silver bullion coin began to soar. Buyers picked up 3,534,500 in the last half of the month, which moved September sales to 4,460,500.

September 2011 Sales of American Eagle Silver Bullion Coins Set Record

See also: Perth Mint sales, Canadian silver maple sales, Chinese Silver Panda sales, Silver Bar Sales, etc., etc.

Bosso

 

[Seraphim]

Thank you, Bosso. I was highlighting precisely that sort of info and apparently that constitutes opinion.

 

[Jeez]

No I'm a 23 year old CSR who owns a home and 100 ounces of silver.

ASE info was NOT the only link in that thread. Investment and bullion is MUCH, MUCH larger than 5%. Why would you only look at ASE...Maples? Philharmonics? Bars? etc etc etc. More like 25% and growing, RAPIDLY.

Regardless industrial usage makes up large portion of Silver and amount used for investment/jewerlry % is still much lower than compared to Gold. Either way as for my comment about you sorry about that but in any market diversification is key. Putting all the $$$ into silver is not wise or buying Silver after large rally after missing the dip.