On March 11, 2011 silver for April delivery finished up 2.49%, or 87 cents, at $35.93 per troy ounce. The white metal has been super nova hot since turning the corner near the end of January and hasn’t reached this price level since March 1980, when the Hunt Brothers of Texas famously tried to corner the silver market.
Precious metals shot higher on reports of civil chaos in Libya, one of the top 10 members of the Organization of the Petroleum Exporting Countries. Economic concerns in Europe and the devaluation of the U.S. dollar has added jet fuel to silver’s vertical move.
The earthquake and tsunami that hit Japan has dealt a major blow to the country’s treading economy. The Japanese government has publicly announced they will do what it takes to get their economy moving in the right direction which means added liquidity into the system.
A report released today by the International Monetary Fund claims that Japan’s government debt will reach 250% of GDP in 2015. The situation in the United States and PIIGS countries in the European Union are in a similar predicament. Staggering numbers of debt to GDP in the developed world is astoundingly remarkable.
Trading silver futures is extremely volatile and dangerous for most everyone but if one would be interested in participating in silver price movement via the equity markets, a couple of ETF’s are available to track silver. iShares Silver Trust (SLV) and ProShares Ultra Silver (AGQ). AGQ is theorectically double leverage so be careful.
*** Buyer Beware. Silver may not be appropriate for you. ***