Basic introductory knowledge of spot silver:

1. Definition of spot silver

Spot silver is also called international spot silver and smart silver. Instant trading means delivery on the same day or a few days after the transaction is completed, and there is no delivery deadline. Silver, like gold, is a globally circulated financial product. Spot silver has a huge daily trading volume, with daily trading volume of approximately $20 trillion. Therefore, no consortium or institution can artificially control such a huge market, and it depends entirely on the market's spontaneous regulation. There are no bookmakers in the spot silver market, the market is standardized, self-disciplined and regulations are sound.

2. Silver trading method:

The minimum trading unit of Ag99.9 on the Paper Silver and Gold Exchange is 1 lot, 1 lot is 15 kilograms, and the transaction fee is three ten thousandths

The gold exchange Ag (T+D) deferred D-day delivery trading variety, one lot is 1 kilogram, and the transaction fee is 0.03%

Spot trading precious metals exchange T+0 24-hour trading system. The third-party custody system ensures safety.

3. Silver investment characteristics

1. The price of silver bars is similar to the spot price of silver, and can follow the price fluctuations in the international futures market and the domestic spot market;

3. Silver has the dual advantages of special credit currency attributes and industrial metal commodity attributes. It can resist inflation, maintain and increase the value of assets, and is suitable for medium and long-term holding investments.

IV. Factors affecting investment in silver

The most direct impact on the silver market is the U.S. dollar exchange rate, inflation expectations, etc., as well as the economic cycle, the amount of industrial silver, etc., so the price of silver The fluctuation range is greater than gold, and the opportunities and risks contained are also greater.

Gold is suitable for investment, and silver is suitable for speculation.

5. The future development trend of silver investment

As for the future trend, silver may be underestimated. The disparity in the price ratio of gold and silver indicates that silver has considerable room for growth.

1. Precious metal investment demand is strong, and silver and gold are highly correlated: the financial crisis is not over yet, and behind the European debt crisis are more concerns about the entire Euro mechanism. Similar to gold, silver also has the ability to maintain asset value. , Risk-averse attributes, from historical statistical analysis, silver and gold prices are highly correlated, with a correlation coefficient as high as 0.92 from 2010 to the present.

2. Silver supply will increase steadily in the future, and global demand will remain stable: The supply and demand relationship for silver will remain relatively stable in the future. Silver supply is expected to increase by approximately 3% in 2011, while major industrial demand will increase in the next two to three years. The average growth rate is around 3%, the demand for jewelry may decline slightly, and the global demand growth rate is around -0.1%. With the increase in exports and downstream demand, my country's oversupply situation has been alleviated and supply and demand will steadily increase in the future. By analyzing the supply and demand situation of silver markets at home and abroad, it is found that the driving force for the rise in silver prices mainly comes from the year-by-year expansion of investment demand. Coupled with the special attributes of precious metals, it will rise simultaneously with the price of gold.

3. The ten-year bull market for precious metals is coming, and silver will keep up with gold: In the past two decades, the world has experienced two rounds of price bull markets. The first round was the decade-long bull market in the stock market in the 1990s, and the second round was the great bull market in asset resources that emerged in the past decade. In the next ten years, under the adjustment of the global international monetary system, gold is expected to show a bull market in the next ten years. Silver, as a precious metal attached to gold, has basically followed gold in history. Silver's precious metal temperament will keep pace with gold in the next ten years. reflect.

6. Factors that push up the price of silver

1. Investment demand. Silver usually plays the dual role of a safe haven asset and an industrial metal. Having these two characteristics at the same time will greatly increase The price of silver. As the advantages of silver investment are gradually revealed, more and more investors are choosing silver. Silver, widely considered undervalued, is attracting hedge funds and other short-term investors.

2. Supply decreases and demand increases

Silver, like gold, has both commodity attributes and currency attributes. The difference is that silver’s commodity attributes are stronger than currency attributes. Statistics show that the existence and supply of silver are rapidly decreasing, while the demand for silver has a significant increase trend.

3. The investment attribute gradually returns

In human history, gold and silver have been used as the most important currencies, and silver became an international currency earlier than the British pound and the US dollar. The monetary system of China's long feudal era has implemented a silver standard system for a long time. The silver ingots of the past dynasties have transformed into various versions of silver dollars in modern times. Silver occupies a pivotal position in the history of Chinese currency.

With the evolution of history, silver’s monetary attributes have gradually faded out of the world economic stage, but its investment attributes as a precious metal have allowed it to maintain lasting vitality.

4. There is a price comparison effect with gold

Compared with gold, the investment value of silver is also relatively obvious. According to statistics, the world's gold stock was 1 billion ounces in 1940, which increased to 5 billion ounces in 2009. Silver had 10 billion ounces in 1940, but now it is only about 1 billion ounces. The stock of silver was 10 times that of gold 70 years ago, but now it is only 1/5 of gold.

As silver inventories in the world decline and future supply growth will be unable to meet demand growth, many experts believe its current value is severely undervalued.