Wednesday 4 May 2011

Silver Heads for Biggest 3-Day Drop Since 2008 on Margin Boost

http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=asOWnQOaQ1N0

Silver futures dropped, heading for the biggest three-day fall since March 2008, as an increase in margin requirements on the Comex in New York drove investors away. Gold also fell after a report that Soros Fund Management LLC may have cut holdings.


“Silver is often the lead indicator for changes in trends, or at least for corrections,”David Wilson, an analyst at Societe Generale SA, wrote in a note. After futures rallied to a record $50.35 an ounce in January 1980, prices dropped 78 percent in four months.


Demand for silver and gold has been supported by the growing prospect of currency debasement and accelerating inflation.



No comments:

Post a Comment