Silver Weekly Fundamental Analysis November 19 –23, 2012, Forecast

FXEmpire   |  November 17 2012 4:37 EST

By FXEmpire.com

Introduction: Silver futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity ofsilver(eg. 30000 grams) at a predetermined price on a future delivery date.

Some Facts about Silver

Silveris a soft, shiny and heavy metallic element with a brilliant white luster. A very ductile and malleable metal, its thermal and electrical conductivity is the highest of all known metals.

Besides being used as a store of value, other main uses of silver include applications in areas such as electronics, photography and as antiseptics.

Consumers and producers of silver can manage silver price risk by purchasing and selling silver futures. Silver producers can employ ashort hedgeto lock in a selling price for the silver they produce while businesses that require silver can utilize along hedgeto secure a purchase price for thecommoditythey need.

Silver futures are also traded by speculators who assume the price risk that hedgers try to avoid in return for a chance to profit from favorable silver price movement. Speculatorsbuy silver futureswhen they believe that silver prices will go up. Conversely, they willsell silver futureswhen they think that silver prices will fall.

Weekly Analysis and Recommendations:

Silver followed industrial metals up and down this week as precious metals moved between gains and losses this week. Silver ended the week at 32.308 after opening Monday at 32.673 down 36 cents for the week.

Silver also dropped following sustained speculative selling on the back of weak industrial demand.

As the market expected, the Euro area fell into a recession with real GDP growth dropping 0.1% in Q3 after falling 0.2% in Q2 while the September industrial production fell 2.5%. Germany’s and France’s real GDP rose 0.2% while that of Italy and Spain declined 0.2% and 0.3% respectively in Q3. The Japanese government also downgraded its economic outlook for four consecutive months due primarily to the weakening external outlook.

In the U.S., both the New York and Philadelphiamanufacturing indexes contractedin November. The unemployment claims ending the week of Nov. 10 shot up by 78,000 because of the aftermath effect of Hurricane Sandy, although real GDP growth may not be impacted in total in the next two quarters. The debate on the fiscal cliff has clearly weakened sentiments in the U.S.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more recent analysis and information in our weekly reports and we provide daily updates and outlooks.

Major Economic Events for the week of November 12 16, 2012 actual v. forecast for Euro, GPB, the Franc, and USD

Historical: From 2010 to present

Highest:49.813 on Apr 25, 2011

Average:28.468 over this period.

Lowest:14.655 on Feb 05, 2010

Economic Highlights of the coming week that affect the Euro, GBP, CHF and the USD

Government Bond Auction

Date Time Country

Nov 19 10:10 Norway

Nov 20 09:30 Spain

Nov 20 10:10 Greece

Nov 20 10:30 UK

Nov 21 10:30 Germany

Nov 21 15:10 Sweden

Nov 21 16:00 US

Nov 21 18:00 US

Nov 22 09:30 Spain

Nov 22 10:10 Sweden

Nov 23 16:30 Italy

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Originally posted here