Chris Flood wrote an article Silver market at a watershed in the Financial Times (subscription required).
A new cycle of buying has led to a fundamental shift in the silver market and prices could return to the boom levels of the 1980s, a leading industry consultancy has forecast.
CPM Group, the New York commodities consultant which released its 2006 Silver Yearbook yesterday, said the silver market appeared to be at a watershed.
Neither the FT article nor CPM Group website provide much detail.
Silver prices have been volatile over the past few days and there are more rumors as to when the silver ETF might become effective. Since I am not an active trader, I am not fussed one way or the other as I expect that the ETF will be soon. And I continue to believe that silver prices are headed higher.
Hi Kevin, Today sivler prices went up by about 6% but PAAS hardly moved. Since I'm new to PAAS, was wondering if that was normal.
Thanks,
AJ
Hi AJ,
Yeah, the correlation between metal prices and stocks prices is less than perfect. Sometimes one leads the other.
Generally speaking, as metal prices increase, so does the stock price. But day to day, the correlation does not always go hand in hand.
I note that PAAS is up today, nearly matching today's silver price increase. Will PAAS catch up for the 6% rise yesterday. Eventually, I think it will do that and more.
I will try to write a post about this topic in the near future.
Kevin
Thanks Kevin!