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.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.