Reply #43: Silver soars on ETF, but will luster last?

[54anickel]

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B64DDD031%2DBF2F%2D454E%2D87AF%2D01F5F34B04BA%7D&siteid=google

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What's more, "global demand has moved to a point where it is greater than new global production," said Julian Phillips, an analyst at GoldForecaster.com, emphasizing consumption from China and India.

Add that to the prospects of a silver-based ETF and "you have an explosive situation," he said.

The silver ETF is really the biggest thing to happen to the silver market since the Hunt brothers tried to corner the silver market some 25 years ago, said Jim Wyckoff, an analyst at TradingEducation.com, referring to the duo that pushed silver to $50 an ounce around 1980.

Phillips said the Hunt brothers' attempt to corner the silver market decades ago was "unsuccessful."
But "with the ETF on the market, such attempts on the back of investors like Warren Buffet will have a greater degree of success than before," he said.

Too good to be true?
That said, silver analysts do have their qualms about exactly how the new investment vehicle will influence the silver market.

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