Silver futures have been steadily climbing since crashing earlier this month just after nearly brushing by all-time record highs in late April, and some analysts attribute the pique in value to the dollar's weakness being exposed.
The Financial Times reports the precious metal, which is used for industrial purposes and by investors to hedge against the devaluation of currency, lived up to its reputation for volatility by flirting with $50 per troy ounce in late April, diving in value three straight weeks to $32 per troy ounce before beginning to rebound last week. It ended the week just short of $38 per troy ounce.
"There's not a large number of people who ever think the current price is the right price," Mitsubishi precious metals strategist Matthew Turner told the publication. "Some people think it should be much higher, and others think it should be much lower. That tends to mean the price is quite volatile."
The most recent climb of the volatile metal also is believed to be based on the debilitating dollar as well as concerns about the euro zone sovereign debt crisis.
The Street reports that silver futures were on the upswing on Tuesday morning, wrapping up a rough May.
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.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
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 third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.