Monday, April 25, 2011
hi yo silver (updated)
Word on the street is that tonight, April 25, Japanese bankers and investors are going to take silver down. If so it'll be interesting to see how it plays out.
What prompted their decision to do it now was the American Precious Metals Exchange (AMPEX), the biggest on-line trader, confirmed that it is offering to buy any amount of silver at $3. over spot price. Demand is overwhelming available supplies, and that hurts Asian economies.
About 40 percent of silver demand is for industrial purposes, and a lot of that is the amount of silver needed for the circuit boards that go into so many of the electronics products coming from the Far East.
Could be a roller coaster.
UPDATE: If that four-dollar drop last night was it, and I think it was, there's not much to be afraid of. The shiny stuff is holding its own today at about $45. Industrial demand, plus the demand generated by millions of small buyers of bullion now outweighs the power of investors to control prices.