Could a bubble be forming in precious metals? Even though the true demand for silver has increased with the demand for higher-end electronics, the price of silver is outpacing true demand. What I mean by true demand is the demand of end-user silver products rather than silver holdings (bullion, coins, ETF shares, etc). True demand is the demand of users to take physical silver and use it in computers, mirrors, anti-bacterial products, flatware, and of course jewelry, just to name a few items.
The artificial demand that we are seeing now (and possibly the start of a bubble) is the demand created by precious metals ETFs (Exchange-Traded Funds). The first precious metal ETF was a Gold ETF that was created in 2004, followed by a second Gold ETF in 2005 and the first Silver ETF in 2006. Each purchase of a share of an ETF represents a physical amount of gold or silver that the administrator of the ETF must buy on the open market and hold in their vaults. There are currently 25 Gold ETFs and 14 Silver ETFs just between the American, Canadian, and British stock exchanges. Today I just read about another Silver ETF that will IPO soon on both American and Canadian exchanges. This means more buying of silver so they can hold in their vaults.
The following is a report I read today on MineWeb.com regarding who silver investing reached an all-time high in 2010. Even though silver usage is up, I feel we are now at the mercy of speculators (some say investors). The price of silver is now four times higher than it was in 2005 and I know true demand hasn't increased four-fold as well. Classic start of a bubble!
http://www.mineweb.co.za/mineweb/view/mineweb/en/page32?oid=114043&sn=Detail&pid=32
Silver investment is breaking records in 2010--Silver Institute
Recent data gathered by the Silver Institute reveals record silver investment, as well as soaring bullion coin demand.
Author: Dorothy Kosich
Posted: Tuesday , 02 Nov 2010
RENO -
The Silver Institute noted Monday that silver investment has soared this year with record highs in silver-backed ETFs as U.S. silver bullion coin demand remains "exceptionally strong."
Total global holdings in silver ETFs now stand at 448,997,000 million ounces with 326 million ounces being held by the iShares Silver Trust alone, the Silver Institute said.
Net assets in the iShares Silver Trust totaled $7.8 billion as of October 29th.
Other notable silver ETFs are being managed by ETF Securities and Zurcher Kantonalbank, with Sprott Inc. recently announcing its IPO for the Sprott Physical Silver Trust, which will be listed on the Toronto and NYSE Arca exchanges.
The Silver Institute also advised that silver bullion coins are "also particularly buoyant" this year with sales of the U.S. Mint's one-ounce Silver American Eagle Bullion coin already surpassing 28 million coins this year. The Mint believes sales could exceed last year's record of 28.7 million coins.
The Royal Canadian Mint is reporting that this year's sales of its Silver Maple Leaf bullion coin are already 30% higher than last year's sales to date, the Institute said.
"Today, the silver price is approaching $25 per ounce and thorugh 2010, the silver price has risen an impressive 47% to levels not seen in 30 years," Silver Institute Executive Director Mike DiRienzo observed Monday. "While this is primarily due to solid investment demand, there is evidence that industrial demand for silver is also on the rise, and that too bodes very well for silver in the long run."
Wednesday, November 3, 2010
Thursday, October 28, 2010
Does this roller-coaster go down too?
It looks like the silver roller-coaster ride is just going up a steep incline but will it ever have that scary drop straight down into the abyss? Based on the ride of the past 5 years it doesn't appear so. Before 2005, you could count on a constant price of silver being in the $5-$7 range with a few outlying events. Since that time, the price of silver has risen from $7 up to $24 (3.5 times or a 243% increase). The reason for the constant rise may be based on the establishment of the Silver ETF.
In 2005, Barlays Global Investors made plans to establish a Silver Exchange Traded Fund (ETF) which was based on the successful Gold ETFs that first debuted in 2004. For the Silver ETF, each share of the Silver ETF represents 10 ounces of real silver that Barclays must purchase and hold in a vault. When Barclays proposed the Silver ETF, the non-profit Silver Users Association was opposed to the ETF on the basis that it would take a large amount of silver off of the open market and push up prices. Based on the history of the past 5 years, it appears that their forecast is correct. Barclays had to start buying the reserves they needed for the ETF in 2005 so with the approval from the SEC (Securities & Exchange Commission), they were able to launch the Silver ETF in April of 2006. At that point, with Barclays buying so much silver for their reserves, the price of silver had already climbed from $7 in 2005 to $12 in 2006. The month the ETF debuted, silver went from $12 to $15 (25% increase in one month).
We are now at the mercy of speculators (some say investors) rather than actual silver end-users. Within 2 years of the debut of the Silver ETF, the price of silver had gone to over $20, almost doubling the price from the ETF debut and three times the historical price. As mentioned previously, you count historically count on a constant pricing of silver in the $5-$7 range. Since the debut of the ETF, we start to see a wild swing in the price. In 2008, silver dropped back down to below $10, a drop over over 50% in a matter of months. In 2009 it rose back up, almost hitting the $20 mark again but this time it was a slower and steadier climb with fewer wild swings in the price. It rose with higher highs and higher lows and finished 2009 just below $18/oz. In 2010, it dropped slightly to $16/oz to the start the year but then gradually climbed to the present price of $24/oz.
However, even at $24 we are still 50% below the all-time high price of silver. The silver market has been at the hands of speculators before. Back in the late 1970's, the Hunt Brothers tried to corner the market on silver, driving it to the all time high of $49.45 in 1980. At height of their buying, they held 1/3 of the world's private market(sellable) silver, thus restricting the available amount for sale on the open market. The Hunt Brothers' hoarding of the silver and purchase on the open market caused the price to go from $6/oz to almost $50/oz. Tiffanys ran a full-page ad in the New York Times condemning the Hunt Brothers and the rules that allow them to manipulate the market. After changes to the trading rules on the Comex (Commodity exchange) in regards to buying on margin, the Hunt Brothers were facing margin calls on their purchases and were forced to sell and market panic ensued. The market dropped down to $11 and gradually returned to the historic $6 range.
Another factor in the current rise in silver prices is the increased use of silver in electronics and manufacturing, not to mention the increase availablity of silver jewelry. Since silver has the highest electrical conductivity of any element and the highest thermal conductivity of any metal, silver is used widely in manufacturing. Some of the applications using silver include computers, batteries, mirrors, stereo equipment, music instruments, photography, medicinal equipment, etc. It is also used for silverware utensils, jewelry, anti-microbial applications, etc.
Some say the uncertainty in the economy and the uncertainty of the long-term strength of the dollar is what is currently driving people to buy more gold and silver. Some say it is the usual market speculation - people looking to make a quick dollar. Some say it is the increased use of silver in electronics, manufacturing, and jewelry. I think a major part of the current price is that we now have at least 14 Silver ETFs - 6 in America, 3 in Canada, and 5 in England. With each ETF having to buy physical silver that represents each share sold, we now have Hunt Brothers style hoarding of silver. Combine that with the other factors and it seems like this roller-coaster might continue on it current path upward.
In 2005, Barlays Global Investors made plans to establish a Silver Exchange Traded Fund (ETF) which was based on the successful Gold ETFs that first debuted in 2004. For the Silver ETF, each share of the Silver ETF represents 10 ounces of real silver that Barclays must purchase and hold in a vault. When Barclays proposed the Silver ETF, the non-profit Silver Users Association was opposed to the ETF on the basis that it would take a large amount of silver off of the open market and push up prices. Based on the history of the past 5 years, it appears that their forecast is correct. Barclays had to start buying the reserves they needed for the ETF in 2005 so with the approval from the SEC (Securities & Exchange Commission), they were able to launch the Silver ETF in April of 2006. At that point, with Barclays buying so much silver for their reserves, the price of silver had already climbed from $7 in 2005 to $12 in 2006. The month the ETF debuted, silver went from $12 to $15 (25% increase in one month).
We are now at the mercy of speculators (some say investors) rather than actual silver end-users. Within 2 years of the debut of the Silver ETF, the price of silver had gone to over $20, almost doubling the price from the ETF debut and three times the historical price. As mentioned previously, you count historically count on a constant pricing of silver in the $5-$7 range. Since the debut of the ETF, we start to see a wild swing in the price. In 2008, silver dropped back down to below $10, a drop over over 50% in a matter of months. In 2009 it rose back up, almost hitting the $20 mark again but this time it was a slower and steadier climb with fewer wild swings in the price. It rose with higher highs and higher lows and finished 2009 just below $18/oz. In 2010, it dropped slightly to $16/oz to the start the year but then gradually climbed to the present price of $24/oz.
However, even at $24 we are still 50% below the all-time high price of silver. The silver market has been at the hands of speculators before. Back in the late 1970's, the Hunt Brothers tried to corner the market on silver, driving it to the all time high of $49.45 in 1980. At height of their buying, they held 1/3 of the world's private market(sellable) silver, thus restricting the available amount for sale on the open market. The Hunt Brothers' hoarding of the silver and purchase on the open market caused the price to go from $6/oz to almost $50/oz. Tiffanys ran a full-page ad in the New York Times condemning the Hunt Brothers and the rules that allow them to manipulate the market. After changes to the trading rules on the Comex (Commodity exchange) in regards to buying on margin, the Hunt Brothers were facing margin calls on their purchases and were forced to sell and market panic ensued. The market dropped down to $11 and gradually returned to the historic $6 range.
Another factor in the current rise in silver prices is the increased use of silver in electronics and manufacturing, not to mention the increase availablity of silver jewelry. Since silver has the highest electrical conductivity of any element and the highest thermal conductivity of any metal, silver is used widely in manufacturing. Some of the applications using silver include computers, batteries, mirrors, stereo equipment, music instruments, photography, medicinal equipment, etc. It is also used for silverware utensils, jewelry, anti-microbial applications, etc.
Some say the uncertainty in the economy and the uncertainty of the long-term strength of the dollar is what is currently driving people to buy more gold and silver. Some say it is the usual market speculation - people looking to make a quick dollar. Some say it is the increased use of silver in electronics, manufacturing, and jewelry. I think a major part of the current price is that we now have at least 14 Silver ETFs - 6 in America, 3 in Canada, and 5 in England. With each ETF having to buy physical silver that represents each share sold, we now have Hunt Brothers style hoarding of silver. Combine that with the other factors and it seems like this roller-coaster might continue on it current path upward.
Wednesday, September 15, 2010
Super September!
Welcome to the month of September!
- Septem is Latin for seven and September was originally the 7th month in the Roman calendar (March was the 1st month). September was moved to become the 9th month when Julius Caesar introduced a revised calendar but retained its name (along with October, November, and December).
- September's traditional birthstone is Sapphire. Sapphire is a gemstone of the mineral corundum and is available in many colors (except red) with blue being the best known and most popular. Red corundum is called Ruby.
- Other birthstones for September include Agate (Tibetan/Mystical) and Moonstone (Ayurvedic). Peridot (Chrysolite) was the birthstone of September for many ancient cultures.
- September's birthflowers are the Forget-Me-Not, Morning Glory, and Aster.
- September is National Classical Music Month, National Self-Improvement Month, National Better Breakfast Month, National Chicken Month, National Rice Month, and National Papaya Month (sounds like a recipe!)
- The song "September" was a top 10 hit for Earth, Wind, & Fire.
- The song "Wake Me Up When September Ends" was a top 10 hit for Green Day.
- September 1, 1830, the poem “Mary had a Little Lamb” was first published.
- September 1, 1939, Hitler invaded Poland. Two days later, on September 3, France and Britain declared war with Germany thus starting World War II.
- September 2, 1945, Japan officially surrendered to the US on the deck of the USS Missouri ending WW2.
- September 2, 1966, the Great Fire of London started in a bakery on Pudding Lane and would burn for four days and destroy 80% of the city.
- September 7, 1936, Charles Hardin Holley, better known as Buddy Holly, was born in Lubbock, TX
- September 8, 1966, the premier of Star Trek boldly went where no other television series had gone before.
- September 11, 1962, the Beatles recorded their first single,”Love Me Do“.
- September 13, 1814, the British attacked Ft McHenry, Maryland but had little effect on the defenders thus inspiring lawyer Francis Scott Key to write "The Star Spangled Banner".
- September 15, 1959, Nikita Khrushchev became the first Soviet head of state to visit the USA.
- September 19, 1981, Simon & Garfunkel reunited for a free concert for 500,000 fans in New York's Central Park.
- September 23, 1846 at the Berlin Observatory, German astronomer Johann Gottfried Galle was the first to discover the planet Neptune.
- September 24, 1984, the world's record for the longest kiss was completed (17 days, 10 1/2 hours).
- September 30, 1955, James Dean was killed in a car crash outside of Paso Robles, CA.
Happy birthday to all of the Virgos and Libras born in September!!!
Wishing you all well.
Your friends at
Solid Silver, Inc./ Sosi B Jewelry
- Septem is Latin for seven and September was originally the 7th month in the Roman calendar (March was the 1st month). September was moved to become the 9th month when Julius Caesar introduced a revised calendar but retained its name (along with October, November, and December).
- September's traditional birthstone is Sapphire. Sapphire is a gemstone of the mineral corundum and is available in many colors (except red) with blue being the best known and most popular. Red corundum is called Ruby.
- Other birthstones for September include Agate (Tibetan/Mystical) and Moonstone (Ayurvedic). Peridot (Chrysolite) was the birthstone of September for many ancient cultures.
- September's birthflowers are the Forget-Me-Not, Morning Glory, and Aster.
- September is National Classical Music Month, National Self-Improvement Month, National Better Breakfast Month, National Chicken Month, National Rice Month, and National Papaya Month (sounds like a recipe!)
- The song "September" was a top 10 hit for Earth, Wind, & Fire.
- The song "Wake Me Up When September Ends" was a top 10 hit for Green Day.
- September 1, 1830, the poem “Mary had a Little Lamb” was first published.
- September 1, 1939, Hitler invaded Poland. Two days later, on September 3, France and Britain declared war with Germany thus starting World War II.
- September 2, 1945, Japan officially surrendered to the US on the deck of the USS Missouri ending WW2.
- September 2, 1966, the Great Fire of London started in a bakery on Pudding Lane and would burn for four days and destroy 80% of the city.
- September 7, 1936, Charles Hardin Holley, better known as Buddy Holly, was born in Lubbock, TX
- September 8, 1966, the premier of Star Trek boldly went where no other television series had gone before.
- September 11, 1962, the Beatles recorded their first single,”Love Me Do“.
- September 13, 1814, the British attacked Ft McHenry, Maryland but had little effect on the defenders thus inspiring lawyer Francis Scott Key to write "The Star Spangled Banner".
- September 15, 1959, Nikita Khrushchev became the first Soviet head of state to visit the USA.
- September 19, 1981, Simon & Garfunkel reunited for a free concert for 500,000 fans in New York's Central Park.
- September 23, 1846 at the Berlin Observatory, German astronomer Johann Gottfried Galle was the first to discover the planet Neptune.
- September 24, 1984, the world's record for the longest kiss was completed (17 days, 10 1/2 hours).
- September 30, 1955, James Dean was killed in a car crash outside of Paso Robles, CA.
Happy birthday to all of the Virgos and Libras born in September!!!
Wishing you all well.
Your friends at
Solid Silver, Inc./ Sosi B Jewelry
Monday, June 7, 2010
Solid Silver Featured Article in Web Wholesaler Magazine
The June issue of Web Wholesaler Magazine contains a featured article on our company! They wrote about how we got started and how we have changed. Here's the full article!
Tradition and Innovation at Solid Silver
Jun 1, 2010
by Brian Solomon
A family jewelry business, Solid Silver Inc. was established back in 1986 Los Angeles by Voravudh Vorasuvin, then a recent émigré from Thailand. He had started the manufacturing end of the company in Thailand already, but brought it to the states as a strictly wholesale business. Once his sister and brother came on board to help with the manufacturing side of the business, he was able to move to the States and set up shop. "This was long before the Internet existed," recalls his daughter, Sirikaan Thompson, who was only a child at the time. "Back then, business was just trade shows and our showroom. We only sold casted pieces of jewelry. Now, the big difference is that we've incorporated hand-wire wrapping, which is labor-intensive. It is very detailed, and you have to learn the skill. The look is very different-more dangly, quite delicate-as opposed to the chunkier casted pieces from before."
Thompson became involved in the business in 1997, after finishing college. First involved in sales, then design, she now runs the entire U.S. end of operations for her parents, who moved back to their native Thailand to oversee the manufacturing six years ago. After joining the company, Thompson immediately became a force for change and growth. "I saw the need to communicate to Thailand," she says. "So we moved on to email, which was faster than faxing-and free- and then incorporated a website. Originally, this site was just a catalogue, with company information and pictures of the line. We used to mail out our catalogues, and postcards about our trade shows-we still do that, but a lot of people will say, 'Just email me.' Plus, we added a shopping cart to the site about six years ago."
Thompson's parents were content to just pick up the phone and communicate the more traditional way, but Sirikaan, along with her sister, who joined a little later, were adamant that email had become an indispensable tool, particularly for sending photos. Instead of just faxing black and white images, they could now snap a picture, email and price it right then and there. It was also a quicker way to communicate with the manufacturers in Thailand. Thompson knew her customers wanted to move to online shopping as well. The web presence represented a quick way to update customers on what was new in the product line, such as colors, styles and different stones being incorporated in the jewelry. Plus, it was simply a faster means of communication with the customer.
"The visitors to our website are buyers we already know from trade shows," says Thompson. "I can see the shift now from customers who used to use our traditional print catalogue. They want to see all the current updates, so I tell them to just go to the site. There's a 'New' section. We've added a shopping cart, because they've already seen the line at the trade shows, so it's just easier for them to go back in, search for the item they want to replenish, and shop in between the trade shows."
With the green movement being all the rage these days, Thompson sees Solid Silver's hottest products right now to be organic-themed jewelry that depicts flowers, leaves and things of that sort. Initial letters are also popular. And then there is the very successful Sosi B. line of jewelry. A brand created by Solid Silver, Sosi B. is meant to be something of a play on designer lines, offering a little more than previous Solid Silver offerings. Created with trendiness in mind, the forward-thinking brand was introduced, according to Thompson, to help make it a bit more acceptable to those loyal customers who might be resistant to change. Wire-wrapped, using pearls and natural gemstones, the items in the Sosi. B line are unlike the casted pieces traditionally seen from Solid Silver.
Solid Silver has also distinguished itself online by incorporating a blog into its online presence. Used mainly to let customers know about upcoming designs and trade shows, the blog is a general way of keeping customers well informed. "A lot of buyers who shop with us ask a lot of questions about what's coming out, strong sellers, etc.," Thompson explains, "So this is a way for us to share it with a lot of people at the same time."
For more information:
Solid Silver Inc.
2054 Kildaire Farm Rd., #424
Cary, NC 27518
Tel.: 800-798-2302
Or 919-468-2385
Fax: 919-468-4579
Email: solidsilverinc@yahoo.com
Website: www.solidsilverinc.com
Topic: Company Profiles
Related Articles: wholesale jewelry
Article ID: 1309
Tradition and Innovation at Solid Silver
Jun 1, 2010
by Brian Solomon
A family jewelry business, Solid Silver Inc. was established back in 1986 Los Angeles by Voravudh Vorasuvin, then a recent émigré from Thailand. He had started the manufacturing end of the company in Thailand already, but brought it to the states as a strictly wholesale business. Once his sister and brother came on board to help with the manufacturing side of the business, he was able to move to the States and set up shop. "This was long before the Internet existed," recalls his daughter, Sirikaan Thompson, who was only a child at the time. "Back then, business was just trade shows and our showroom. We only sold casted pieces of jewelry. Now, the big difference is that we've incorporated hand-wire wrapping, which is labor-intensive. It is very detailed, and you have to learn the skill. The look is very different-more dangly, quite delicate-as opposed to the chunkier casted pieces from before."
Thompson became involved in the business in 1997, after finishing college. First involved in sales, then design, she now runs the entire U.S. end of operations for her parents, who moved back to their native Thailand to oversee the manufacturing six years ago. After joining the company, Thompson immediately became a force for change and growth. "I saw the need to communicate to Thailand," she says. "So we moved on to email, which was faster than faxing-and free- and then incorporated a website. Originally, this site was just a catalogue, with company information and pictures of the line. We used to mail out our catalogues, and postcards about our trade shows-we still do that, but a lot of people will say, 'Just email me.' Plus, we added a shopping cart to the site about six years ago."
Thompson's parents were content to just pick up the phone and communicate the more traditional way, but Sirikaan, along with her sister, who joined a little later, were adamant that email had become an indispensable tool, particularly for sending photos. Instead of just faxing black and white images, they could now snap a picture, email and price it right then and there. It was also a quicker way to communicate with the manufacturers in Thailand. Thompson knew her customers wanted to move to online shopping as well. The web presence represented a quick way to update customers on what was new in the product line, such as colors, styles and different stones being incorporated in the jewelry. Plus, it was simply a faster means of communication with the customer.
"The visitors to our website are buyers we already know from trade shows," says Thompson. "I can see the shift now from customers who used to use our traditional print catalogue. They want to see all the current updates, so I tell them to just go to the site. There's a 'New' section. We've added a shopping cart, because they've already seen the line at the trade shows, so it's just easier for them to go back in, search for the item they want to replenish, and shop in between the trade shows."
With the green movement being all the rage these days, Thompson sees Solid Silver's hottest products right now to be organic-themed jewelry that depicts flowers, leaves and things of that sort. Initial letters are also popular. And then there is the very successful Sosi B. line of jewelry. A brand created by Solid Silver, Sosi B. is meant to be something of a play on designer lines, offering a little more than previous Solid Silver offerings. Created with trendiness in mind, the forward-thinking brand was introduced, according to Thompson, to help make it a bit more acceptable to those loyal customers who might be resistant to change. Wire-wrapped, using pearls and natural gemstones, the items in the Sosi. B line are unlike the casted pieces traditionally seen from Solid Silver.
Solid Silver has also distinguished itself online by incorporating a blog into its online presence. Used mainly to let customers know about upcoming designs and trade shows, the blog is a general way of keeping customers well informed. "A lot of buyers who shop with us ask a lot of questions about what's coming out, strong sellers, etc.," Thompson explains, "So this is a way for us to share it with a lot of people at the same time."
For more information:
Solid Silver Inc.
2054 Kildaire Farm Rd., #424
Cary, NC 27518
Tel.: 800-798-2302
Or 919-468-2385
Fax: 919-468-4579
Email: solidsilverinc@yahoo.com
Website: www.solidsilverinc.com
Topic: Company Profiles
Related Articles: wholesale jewelry
Article ID: 1309
Wednesday, April 28, 2010
From the Editors of ACCESSORIES Magazine
Just got an email from the editors of industry's fashion magazine, ACCESSORIES that the current summer trends are sea life motifs and the color orange.
For sea life motifs, may we suggest:
To see all sea life jewelry, please go to the Oceania Collection.
For sea life motifs, may we suggest:
To see all sea life jewelry, please go to the Oceania Collection.
Tuesday, April 27, 2010
You Really "Like" Us!
Just launched Sosi B. / Solid Silver, Inc. Facebook page! To celebrate our presence on Facebook we are hosting a contest. To enter the contest simply click "Like" and add us to your page. On May 5th, one lucky winner from our page will be randomly selected to win a pair of sterling silver amethyst drop and stones cluster earrings. Get on the list of people that like our page for your chance to win, click here.
Tuesday, January 19, 2010
Come see us at NYIGF, Booth# 8745
Show dates: January 31 - February 4
Booth# 8745
New York International Gift Fair at the Javits Center! Located at:
655 West 34th Street
New York, NY 10001-1114
Buyers online registration is at NYIGF.com.
We hope to see you there!
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