Silver: What Gives?

Andrew Wilkinson submits: iShares Silver Trust (SLV) – It looks as though commodity traders have it all to play for in 2010. Raw materials prices had surged especially late in 2009 as they felt the tailwind of a declining dollar. However, an abrupt about-face helped pull the rug and several commodity prices went into a tailspin.

It’s a knee-jerk reaction. There are still ultra-low interest rates, which will support gold Gold dropped to a four-month low in London and headed for the longest run of weekly losses since 2004 after Federal Reserve minutes showed policy makers may end their $85 billion monthly bond purchases this year. Silver declined to the lowest since August.

Danny Furman submits:According to my recent analysis, over the last decade moves in precious metal trading have consistently predicted movements in the U.S. stock market. A primary force determining the leadership role displyed by the metals is global economic growth, which has heightened demand for industrial commodities.

Chris Ciovacco submits: Market professionals and experienced investors consider it to be common knowledge that silver has more real-world uses than its precious metal sister gold. Silver is used in coins, photography, batteries, bearings, electronics, and mirrors. Silver also aids in numerous medical applications and even contributes to helping capture and use solar energy.

Reuters Precious Metals Poll - Year End Gold Price Forecasts Gold climbed $15.50 or 1.09% yesterday to $1,430.40/oz and silver finished up 1.00%. Gold climbed to its highest in more than a week on Thursday, boosted by physical demand from store of wealth buyers globally and from central banks. 

By Jeb Handwerger:Readers continue to express an abiding interest in silver, also known as the “poor man’s gold.” Prominent among the questions they raise: Quo vadis silver? Recently the noble white metal experienced a rapid run-up to the halcyon heights of $50, only to retreat precipitously to the low $30s. This on-again, off-again action was due to a technical response to silver’s inherent volatility as both an industrial and a safe haven metal.

Tom Lydon submits: ETF Spotlight on ETFS Physical Silver Shares (SIVR), part of an ongoing series. Assets: $635.7 million. Objective: The ETF tracks the price of silver. Holdings: Physical allocated silver bullion held in vaults in London by custodian HSBC Bank USA. What You Should Know:

Kevin Grewal submits: Although gold continues to grab most of the attention in the precious metal world, its less glamorous sister, silver, may be more appealing and for good reason.