Despite the fact that the US debt limit issue was finally resolved a couple of days ago, there has been no selloff in the market of silver so far. Mexico reported that its mining industry was going to expand the production of silver up to 44M ounces but the market showed no reaction to the news.
It should be noted that in 2010 Mexico produced 3971 tons more than Peru, thus becoming the world’s number 1. The silver reserves at Comex reached 104, 498M ounces (+ 321 452 ounces).
Probably, investors still have no confidence in the global economy and want to secure against potential shocks by investing in safe heaven assets. However, it is necessary to take into account the industrial production use of these metals. That is why it is advised to pay attention to this week’s major economic reports, including Non-Farm Employment Change and Unemployment Rate. Last week the amount of new jobs declined by 18K, which instantly pushed silver prices up, making silver come out of the 2-month price range (33.38-38.845). This month’s forecast says Non-Farm Employment will reach 91K.
According to the Department of Commodity Trading, , the market of silver and gold may see a trend reversal only when the US start considering an interest rate increase.
