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Silver Demand – Money Versus Commodity

November 4, 2012 in Precious Metals, Silver

From http://www.Silver-Coin-Investor.com

The silver market often seems to be like burning both ends of a candle at the same time. Basically, somewhere in the middle the two flames are bound to meet and cause an explosion in price.
Many long term precious metal investors have wondered whether silver is just another commodity component of the CCI, or if it will eventually reassert itself as money?

In many ways, silver still behaves like any other commodity market that trades largely based on technical indicators, signals and chart patterns. In large part, this appearance is maintained by the market makers, who are the big bullion banks dominated by J.P. Morgan Chase.

At the Mercy of the CFTC, CME and the CCI

Currently holding above support noted at $31.50, the COT structure remains bearish for silver. Although Open Interest fell somewhat during the recent downside correction, a lot of speculative longs remain in the Chicago silver futures market.

Meanwhile, less and less physical metal is available to investors to purchase as it gets buried underneath a huge mountain of paper derivatives. The silver mining sector remains weak and is also at the mercy of the big commercial banks upon which miners depend heavily for their financing.

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