Futures Market News
Silver cuts into gold ratio
Apr 05, 2011 09:12 AM
An ounce of gold in Singapore equaled 37.15 ounces of silver. That average has hovered around 62 ounces for the past decade. Silver futures have at least doubled in value during the past year while gold's value has risen 27 percent.
"Silver has yet to hit a record which means the ratio will decline further" to values not seen since the Hunt brothers attempted to corner the market in 1980, according to Hwang Il Doo, Seoul-based senior trader with KEB Futures Co. "Investor and industrial demand is strong as the economic recovery is under way and inflation becomes a worry."
Precious metal demand is attributable to optimism about economic recovery from the globe's deep economic recession, fighting in North Africa and the Middle East and concerns about inflation.
Shortly after 9:45 a.m. on Tuesday, gold futures edged up 0.09 percent, a $1.30 rise to $1,434.30 per troy ounce. Silver futures slipped 0.02 percent, a 0.009 cent slip to $38.485 per troy ounce.
Don’t Miss Our News Updates!
Follow our breaking news stories and get a unique take on current events that may impact the commodity futures markets. Multiple new articles are posted each weekday. Subscribe to our commodity news updates by email, and receive real-time updates with our RSS feed, follow us on Twitter @DanielsTrading, become a fan on Facebook to stay informed.
SPECIAL OFFER: The Future of Natural Gas in the U.S.
Are you interested in the Energy futures market? Sign up and receive our detailed report today!
Through our exclusive research, you will have access to current global events and price projections that may help you learn how this particular market has the potential to be a strong investment as a commodity.
Register for Your Free 2-Week Trial of the dt Insider Market Advisory!
With your free trial membership, you'll receive full access to our exclusive trade recommendation service and all of the timely and accurate trade information you need to feel comfortable participating in the markets.