{"id":31336,"date":"2012-08-02T12:36:35","date_gmt":"2012-08-02T12:36:35","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=31336"},"modified":"2012-08-02T12:36:35","modified_gmt":"2012-08-02T12:36:35","slug":"silver-suffers-the-most-from-bernanke-and-what-is-next","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2012\/08\/02\/silver-suffers-the-most-from-bernanke-and-what-is-next\/","title":{"rendered":"Silver Suffers The Most From Bernanke And What Is Next"},"content":{"rendered":"

By Chris Vermeulen, GoldAndOilGuy.com<\/a><\/span><\/strong><\/p>\n

While the exchange traded funds for gold (NYSEARCA: GLD TRADING<\/a> –\u00a0 GLD QUOTE<\/a>) and copper (NYSEARCA: JJC) fell today due to investors expressing disappoint at the modest response of the Federal Reserve to declining economic growth, it was silver (NYSEARCA: SLV Trading<\/a>, SLV Quote<\/a>) that was off the most.<\/p>\n

SPDR Gold Shares (GLD) fell in trading today by 0.89%.\u00a0\u00a0\u00a0 IPath Dow Jones Copper (JJC) dropped 1.89%.\u00a0 Plunging the deepest was iShares Silver Trust (SLV), off by 2.14%.<\/p>\n

\"SLV<\/a><\/p>\n

SLV Bullion Trust<\/strong><\/p>\n

Traders were hoping for more aggressive action by Federal Reserve Chairman Ben Bernanke.\u00a0 But that will not come until after the November elections in the United States.\u00a0 Remember that Quantitative Easing 2 did not begin until November 2010, though it was announced at the Jackson Hole economic policy summit in August of 2010.<\/p>\n

Silver is in what would seem to be the \u201csweet spot\u201d between gold and copper.\u00a0 Almost all of gold is used for investment or decorative purposes.\u00a0 Almost all of The Red Metal goes for industrial needs.\u00a0\u00a0 For silver, it comes almost down right in the middle between commercial and a commodity for investments or jewelry.\u00a0 The charts below show the trading relationship for each of the exchange traded funds when paired against each other.<\/p>\n

\"JJC<\/a><\/p>\n

JJC Copper ETF Trading<\/strong><\/p>\n

Even though silver has a much higher industrial usage, the SLV moves along with the GLD.\u00a0\u00a0 As a result, it soared during Quantitative Easing 2.\u00a0 Obviously, the charts reveal that most of the trading is from speculators as the JJC should move in an inverse relationship with the GLD.\u00a0 That is due to gold being used almost entirely for non-industrial end uses while copper is used almost industrial for industrial uses.<\/p>\n

Up slightly for the week as traders thought more dramatic economic stimulus efforts would result from the Federal Open Market Committee meeting \u00a0other than an extension until the end of the year for Operation Twist, the SLV is down for the last month, quarter, six months and 52 weeks of market action.\u00a0 Year to date, the SLV is off by 1.48%.<\/p>\n

For the last year, however, the SLV is down 33.35%.\u00a0 Volume was up today, with the SLV below its 20-day, 50-day and 200-day moving averages.\u00a0 In the most obvious trend, it is trading much lower under its 200-day day moving average at 11.67% down than underneath the 20-day moving average, beneath it by only 0.17%.\u00a0 The only move worth noting in the technical indicators for silver were the long engulfing green bodies last week after Treasury Secretary Geithner\u2019s \u00a0gloomy testimony on The Hill and more bad economic news from the US peaked buying as traders thought Quantitative Easing 3 was coming.<\/p>\n

\"SLV<\/a><\/p>\n

SLV ETF Trading<\/strong><\/p>\n

If traders long on silver are looking for help from Bernanke, it will not be coming until after the November election, though it could be announced when he speaks later this month at Jackson Hole.<\/p>\n

By Chris Vermeulen, GoldAndOilGuy.com<\/a><\/span><\/strong><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Chris Vermeulen, GoldAndOilGuy.com While the exchange traded funds for gold (NYSEARCA: GLD TRADING –\u00a0 GLD QUOTE) and copper (NYSEARCA: JJC) fell today due to investors expressing disappoint at the modest response of the Federal Reserve to declining economic growth, it was silver (NYSEARCA: SLV Trading, SLV Quote) that was off the most. SPDR Gold … <\/p>\n

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