Port St. Lucie, FL (PRWEB) February 4, 2009
Recent large fluctuations in many of the world's major currencies has pushed many investors to purchase physical silver, silver futures and options and silver ETFs to shelter them from currencies that are becoming worth less and less. T & K Futures and Options, Inc. believe that this demand may push silver futures prices to $20 in the next few months.
Silver is considered by many investors to be a safe haven and an inflationary hedge in times of economic turmoil. It is also considered to be a type of insurance to protect against weakening currency valuations. Recent large fluctuations in many of the world's major currencies has pushed many investors to purchase physical silver, silver futures and options and silver ETFs to shelter them from currencies that are becoming worth less and less. T & K futures and Options, Inc. believes that this demand may push silver futures prices to $20 in the next few months.
Unlike gold, silver is becoming scarcer because it is used in so many various products such as cell phones, flat screen televisions, batteries, bearings, soldering, catalysts, photography and solar energy production. Silver is considered both a precious metal and an industrial metal by many.
The current global economic problems have forced many nations to cut interest rates which often leads to weakened currency valuations. In the U.S., record low rates and the printing of money should lead from the deflationary environment that is currently affecting the United States and the rest of the world to a hyper inflationary cycle. These record low interest rates should weaken the U.S. Dollar even more and commodity prices are dollar denominated. If the U.S. Dollar continues to weaken these U.S. dollar denominated commodity markets may be pushed much higher. Energies, grains and the precious metals are especially susceptible to the inflationary pressures of a weakening U.S. Dollar. Visit http://www.tkfutures.com/education.htm to learn more about the precious metals futures and options markets as well as other commodity markets.
Some countries and especially China are buying physical gold and silver instead of U.S. Treasuries. This lack of faith in the U.S. Dollar by many nations may lead to even more hoarding of precious metals such as gold and silver. This may also lead to a massive selling influx of U.S. treasury bills, notes and bonds. The selling of treasuries is in effect a selling or deleveraging of the U.S. Dollar. This may also help to push silver futures prices higher this year. Visit http://www.tkfutures.com/research.htm to learn more about the most recent supply and demand news pertaining to silver futures and silver options.
Silver ETF investing may also help push silver futures prices higher as investors flee the stock and real estate markets. These exchange traded funds are mostly long only meaning that an investor can only bet on higher silver prices and not short the silver markets or bet on lower silver prices. These funds are required to offset their various silver ETF purchases by investors with either the purchase of physical silver or the purchase of the appropriate number of long silver futures contracts. This may also help push silver futures prices higher during 2009. Visit http://www.tkfutures.com/silver.htm to learn more about silver futures and options trading.
The author of this article is a 15-year veteran of the silver futures and options markets and the president of T & K Futures and Options, Inc. silver futures and options trading carries substantial risk of loss and is not suitable for many investors. Only risk capital should be used for this type of investment. Visit http://www.tkfutures.com/products.htm to learn more about the various ways to invest in silver futures and options.