Silver Price Fell By More Than 25%&Nbsp In The First Week Of May; Blind Investment May Be Stuck.

High diving and continuous limit. Entering May, international Noble metal The market suddenly changed, and the price of silver changed to a high level in the early days. It even dropped more than 25%.

Over the past year, silver has been known as the "dark horse" of the global investment sector, which is far more than gold. The price of silver has more than doubled in one year, and the price of domestic silver has risen from less than 4000 yuan per kilogram to 10000 yuan.

In the continuous boom, many industry insiders warned. silver Speculation is too fierce and too many bubbles, but the investment market is still rapidly expanding with the soaring silver price. This almost ominous fall should give investors a wake-up call.

"May storm" silver continuous limit

Silver is a substitute for gold, and its main advantage lies in its low investment threshold and certain financial attributes. However, since the second half of last year, silver has become a "leading actor" in the precious metal investment market. In a short span of a year, the price of silver jumped nearly 170%, especially since the end of January this year.

The current international silver price started at $26.35 an ounce in January 28th this year, reaching a maximum of 49.83 US dollars per ounce in April 25th. Correspondingly, the Shanghai gold exchange's Ag (T+D) contract was launched at a price of 5961 yuan per kilogram in January 26th, reaching a maximum of 10788 yuan in April 29th, or 80.97%.

Since entering May, the international gold and silver market has dropped suddenly, especially in the early stage of soaring silver. In the less than a week, the price of international spot silver dropped from a high of 49 US dollars per ounce to 34.66 US dollars per ounce in May 6th, or 30%. The domestic exchange silver has also seen a rare unilateral market that blocked the daily limit. In the first week of May, the closing price of domestic silver was 7914 yuan per kilogram, down 2648 yuan from last week's closing price of 10562 yuan, or more than 25%, almost returning to the level of early April.

Shanghai Huatong platinum silver market, an analysis of the personage, from the domestic and international trend of unilateral decline in the past week, the current domestic silver price collapse is the product of the international market collapse, not the result of domestic independent market.

Moreover, we should deal with the risk of silver slump, and domestic and foreign trading markets have adopted measures to raise the margin. The New York Commodity Futures Exchange (COMEX) raised the rate of silver margin third times in a week.

Similarly, in the past few days, the Shanghai gold exchange has gradually increased the compensation rate, margin ratio and price limit ratio of the silver Ag (T+D) contract. The latest silver contract margin has reached 20%, and the price limit will also be raised to 15%.

What is more noteworthy is that the international silver fund, which has been used as a silver price trend vane, is rapidly reducing its position. The latest ETF iShares Silver Trust is 10268.92 tons, with a 1.14% reduction in a single day.

Why did the price of silver suddenly drop?

Why did the price of silver suddenly drop? Why is it so fierce?

Jiang Shu, a senior analyst at Xingye Bank, believes that the recent sharp drop in domestic and foreign silver prices is the consequence of the three factors of fundamentals, technology and psychological aspects.

From a fundamental point of view, the rapid rise of silver in April was stimulated by the euro rate hike and the weak meeting of the Fed. The US dollar has accumulated quite a lot of pullback kinetic energy. Just now, when the news of Ben Laden's death came, the US dollar gained strength and reduced the risk aversion of the market, thus causing the gold and silver prices to fall.

Technically speaking, the rapid rise of silver in March and April this year has not experienced a major pullback. The price of silver almost ran to nearly $50 below the ounce of $40 per ounce. In the 10-11 months of 2009 and the 9-10 months of 2010, the market once saw gold and silver ignore the continuous rise of technical indicators, but at that time there was a background matching of the US quantitative easing policy. At present, there was no such background factor. Therefore, silver has the need to release the pressure of adjustment.

From a psychological perspective, the continuous rapid rise of silver prices has in fact triggered investors' concerns. Referring to the ratio of international gold / silver, the price ratio of gold to silver has been around 40 times in history. However, the price of gold and silver has dropped to 30 times since the rapid rise of silver prices since March. This is constantly reminding investors that the price of silver has gone up relative to that of the same camp. Therefore, once the US dollar rebounds slightly, the price of Silver Falls, and the result of profit making and panic will enlarge the decline of silver. After several days of slump, the ratio of gold to silver price has recovered to more than 40 times. According to Xinhua News Agency

Tips

Blind investment may be stuck.

According to Xinhua news agency, the collapse of silver price is not surprising, or in some ways, it is only a matter of time. Silver investment is known to have suffered a painful lesson 31 years ago. After the silver price was artificially framed to $48.7 an ounce, the bubble burst and crashed to $4. Some time ago, when the price of silver was soaring, there was no lack of warning risk in the market, but there were still many lucky investors who were deeply trapped in the crash.

The current silver slump is worth reflecting. First, the boom is often accompanied by a sharp fall. Compared with the rise, the fall will be more violent. Second, at present, the silver market is very popular. From domestic to abroad, the price of silver is obviously not dominated by material supply and demand, but rather by capital speculation.

"Fried silver" must not be blind. We should also pay attention to the risk point of silver cash realisation. Recently, Shanghai media reported that a 28 year old white-collar worker bought 500 silver slips of the zodiac at a price of 5.5 yuan per gram, and sold it online for 8 yuan per gram. In fact, when he sold silver bars, the domestic exchange price of silver had been nearly 10 yuan per gram, and the retail price of the market had exceeded 12 yuan, but the reason why he sold the Internet at a low price of 8 yuan was that the silver bullion was generally only a handicraft, not a silver bar, no formal repo channel, and some people accepted the market when the price of silver rose, but this informal market may disappear at any time, which means that blind investment may be "stuck" and can not be realized.

Experts suggest that if ordinary investors want to configure gold, silver and other precious metals to stabilize their family assets portfolio, they may not be impossible. But we should pay attention to two points: first, calm judgement and not to catch up; two, choose reasonable and regular investment channels, and those who enter the market can avoid the risk of leveraged spanactions.

case

"Fortunately, I ran ahead of schedule".

Washington (reporter Shen Weiqing) Mr. Zhang talked about his investment in the silver postponed spanaction, said, "fortunately, ahead of schedule."

Mr. Zhang has tens of thousands of dollars in hand, because he feels that the investment in precious metals is relatively steady. He has always bought gold and silver as the main investment.

Since last year, Mr. Zhang noted that the silver delayed spanaction continued to be hot, but there was no relevant reason. Investment experience No admission.

After more than half a year's observation, Mr. Zhang bought 3 hands (3 kilograms) at the price of 6300 yuan per hand during the Spring Festival this year. A total of 3402 yuan is calculated at a margin of 18%.

In late April of this year, the price of silver delayed the price of ten thousand yuan. After listening to the advice of the financial planner, he sold it at the price of 10400 yuan per hand in April 22nd, and the direct investment return was nearly 9000 yuan.