Thursday, April 28, 2011

ProShares Ultra Silver (AGQ) (SLV) Soar as Silver Jumps, Gold Prices Rise to New Records

ProShares Ultra Silver (NYSE:AGQ) and iShares Silver Trust (NYSE:SLV) both made big moves Wednesday, as gold posted new records again and silver soared. ProShares UltraShort Silver (NYSE:ZSL) went in the opposite direction of course.

Gold prices Wednesday climbed to another record, reaching as high as $1,529.20 on the Comex division of the New York Mercantile Exchange, before ending the session at $1,517.10 an ounce for June at the Comex.

At the close of regular trading on Comex, silver for May delivery jumped 91 cents, or 2 percent, to end at $45.96 an ounce. Gold and silver were pushing higher in after-hours trading.

Some of this was the result of Federal Reserve chairman Ben Bernanke saying he won't be doing anything soon to combat the soaring inflation.

Bernanke likes to use the so-called core inflation numbers, which exclude food and fuel, which are part of the surging increase in inflation, but aren't officially counted. Which is why Bernanke can say core inflation will rise 1.3%-1.6%, below its 2% inflation mandate.

As to economic growth, Bernanke admitted it was slowing down in the U.S. in 2011, somewhere in the range of 3.1%-3.3%.

The non-action by the Fed concerning interest rates is a very bullish factor for gold and silver, and will continue to offer support and impetus to the precious metals.

The euro climbed to $1.4782 from Tuesday's $1.464. The U.S. dollar rose against the yen, up to 82.11 yen from Tuesday's 81.53 yen.

ProShares Ultra Silver closed at $361.75, gaining $43.31, or 13.60 percent. iShares Silver Trust closed at $47.00, up 2.97, or 6.75 percent. ProShares UltraShort Silver ended at $13.66, falling $2.10, or 13.32 percent.

2 comments:

ronnie1111 said...

Silver reserves maybe much less than previously thought. The amount of Silver used in industry may cause Silver Shock? This is when industry and consumers consume more than is mined? I am buying now, most of my expert friends believe I am right?

ronnie1111 said...

Silver Shock? When Industry and Investors consume more than all the worlds production of Silver. Silver inventories are falling, over 4 million ounces bought by investors from U.S. Treasury last month. Less than 16 month supply of Silver left on Earth?