Monthly Archives: July 2011

Hong Kong Mercantile Exchange is the best deal for silver

China was the market for almost 23 percent of international consumption of silver. If you have been wary of investing in silver, now is definitely the time to reconsider. The Hong Kong Mercantile Exchange has just started trading on silver futures. This will grant Asians direct access to the dollar denominated Chinese silver futures and lower the US prominence in trading of silver bullion.

The entry of Hong Kong Mercantile Exchange in the silver futures market will trigger a lot of other positive responses for silver investors. It will neutralise elite players such as the US.

Trading for silver bullion will be considerably boosted in India and China for the long term. China, Asia and the neighbouring markets will be able to trade in silver bullion directly for the first time. Earlier Chicago Mercantile Exchange silver futures had to be bought and traded via Hong Kong Mercantile Exchange.

In a futures contract the buyer has to be ready to take possession of the commodity whenever the contract is due. These contracts are legally binding and have a particular standard for place of delivery, time, quality and quantity.

Silver investment will continue to grow despite volatility

Silver is not gaining momentum, surely not after crashing from $50 per ounce to $32-36 per ounce. Things are not hunky-dory for the commodity but according to experts, investors should stop greying their hair over the volatility of silver as even today the precious metal is good investment due to its extensive use in industrial arena. Continue reading

Acquisition of historic mine by Silver Horn Mining Ltd

Silver Horn Mining Ltd is a mining company that stresses on silver and develops and explores mining resources. The Company announced its acquisition of the Tip Top Mine in Yavapai County, AZ. The position of the company has strengthened in the mineral rich soil of the Bradshaw Mountains with this acquisition along with the possession of the ‘76’ Mine.

An Analysis of the historic data available states the Tip Top Mine responsible for producing of around 6 million ounces of silver from the years 1876 to 1930’s. From the assay records silver ounces were 360 ounces of silver per ton by an average. The highest recorded assays ran as high as 2,985 ounces of silver per ton.

The company has great plans for the Tip Top Mine. These consist of sampling the ores, mapping the land, assaying to gauge future drilling areas and exploring the underground workings of the property.

The locations of the mines are strategic. Distance from the major highway is only 12 miles and the metropolis is located at a distance of 50 miles from the Phoenix Metropolis. Both mines fall within the mining district and the Yavapai County, in which the mines reside, has a mining conducive jurisdiction. Additionally Arizona has a long history of successful mining.

Daniel Bleak, the President of Silver Horn Mining Ltd stated the company is thrilled to start a new chapter in the Tip Top mining district. He further pointed out that although the district emphasises on silver, the district is also responsible for producing gold and tungsten. The Company aims to increase its shareholder value with these important acquisitions and will continue to add more strategic properties to its possession.

PAMM Analysis: Increasing demand for silver

Silver Coin

Silver Coin

Market trends suggest that the demand for silver has drastically decreased. However, silver is trying to maintain its influence over industries. It is a precious metal for safe investment. This might be because of its counter part, gold which must have more monetary values as compared to silver and it can also combat economic issues of life. However, everybody can’t afford to invest in gold. That is why people have started investing in silver too. Continue reading

Emerging prospects for silver in industral uses

Silver coins

The silver prices after soaring to $50 are now shuttling in the narrow margin from $32 to $36 per ounce. It is difficult to forecast the future of silver prices in the immediate term. However, there are several reasons that silver prices may spell well for investors in the medium and long term considering the several factors affecting silver prices.

The inherent qualities of silver such as being a good lubricant, good conductor of electricity, heat transferring agent and a light reflector had made silver a much demanded metal for industrial purposes. There has been a tumultuous decrease for this demand in the last couple of years.

In an investing guide released by Jeff Clark, he states that the demand for silver from industries has fallen flat in the last few years. Demand for silver in home items for uses such as flatware, cutlery has not grown over the period of last ten years. With the advent of digital storing and photographing, the use of silver in photography is negligible.

In spite of these adverse situations surrounding silver the demand for silver continues to soar. A study by GFMS Ltd for The Silver Institute reveals that the demand for silver will rise from 487.4 million ounces to 665.9 million ounces by the year 2015.

This rise of silver demand is estimated to come from new uses of silver in industries. The consumption of silver for electronics has risen by 120 percent. The use of silver in solar panels and biocides has also increased considerably.

Use of silver in electronics and electricity

As silver is a high thermal and electric conductor it is used for a wide variety of electronic applications. A large portion of silver is used in constructing multi-layer ceramic capacitors, which are widely used in consumer goods. These are also used in cell phones and considering the booming cell phone industry it is reasonable to assume that the demand for silver in this sector will continue to grow. The demand for silver contacts in the automobile industry is expected to rise with the growth of the industry. Silver contacts are used for joining electrical circuits in automobiles. Silver contacts are now even widely used even in windshield wipers to controlling the navigation system of seats.

Use of silver in solar power

The use of silver in solar panels is responsible for a large amount of the demand in silver. The use of silver in solar is expected to increase as the countries around the globe have now realised the dangers of nuclear power after the tsunami that hit Japan. The use of silver in solar panels is not a novel concept and has been is use for some time. However the political and financial goodwill was lacking earlier which is now present. Therefore a large portion of silver demand is expected to come from this industry. The market for this industry is strong in Europe, China, United States and India. Israel, Egypt and Morocco are geared to follow on a minor scale. This scenario has prompted the analysts to predict the rise of silver demand well over the estimated forecast.

Use of silver as a biocide

Silver was for the first time used as a biocide in 2002. Silver has prominent anti-bacterial qualities and the use of silver as biocides has grown over six times its previous use.