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Stocks-Mutual-Funds | High Oil Hurts Silve ...High Oil Hurts SilverTotal Word Count: 222 Author Rating: NA  Rate this article
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As oil continues to trade around $100.00 per barrel, silver has started to fade. The iShares Silver Trust (NYSE:SLV) is trading $32.26, -0.45 (-1.38%). The key with silver is that it is not just a safety net for inflation fears and global instability, it is a production metal. Being a production metal, silver moves sharply higher when...
As oil continues to trade around $100.00 per barrel, silver has started
to fade. The iShares Silver Trust (NYSE:SLV) is trading $32.26, -0.45
(-1.38%). The key with silver is that it is not just a safety net for
inflation fears and global instability, it is a production metal. Being a
production metal, silver moves sharply higher when the global economy
is strong. That is a major reason why silver has been charging higher of
late. The higher oil goes, the more pressure it puts on the economies
of the world. It is said that for every $10 move higher in oil, GDP will
suffer half a percent. Therefore, it makes sense that silver should
sell off and is selling off with oil spiking higher.
Silver should continue to trade lower in the coming days, especially if oil remains around $100 per barrel. It is important to remember that gold is more of a pure inflation, safety play. Please note that gold is higher today while silver is lower. The SPDR Gold Trust (NYSE:GLD) is trading at $137.75, +0.24 (+0.17%). With silver down, it clearly shows that silver is influenced by growth while gold is all about inflation and a safety. Gareth Soloway InTheMoneyStocks.com  ArticleSource: ArticlesAlley.com
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