This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

How the Silver Market Gets Hurt by the World Cup

NEW YORK (TheStreet) -- World Cup action is set to subdue trading in the silver market.

Silver has risen 2.6% year to date and 1.2% since May, but UBS analysts suggested the coming month of World Cup matches, which started June 12 and ends July 13, combined with a summer seasonal slowdown will reduce the number of participants in the market, generating a sideways move for the precious metal.

WATCH: More market update videos on TheStreet TV | More videos from Joe Deaux

"In reality, the link may not be as far-fetched as one might initially think: The focus on the football matches and the overall excitement surrounding these games could act as an added incentive for market participants (and football enthusiasts, more generally) to go for holidays around this time," UBS analysts Joni Teves and Edel Tully wrote Monday in a note to clients.

Teves and Tully said the reduction in traders could be more concentrated as people choose to take their vacations during the month of World Cup games instead of spreading them throughout the summer months during non-World Cup years.

Silver prices for July delivery on Monday were dipping a penny to $19.65 an ounce, while the U.S. dollar index was sliding 0.17% to $80.47.

Gold for August delivery at the COMEX division of the New York Mercantile Exchange was adding $1.10 to $1,275.20 an ounce. The gold price traded as high as $1,285.10 and as low as $1,272.50 an ounce.

Silver trade volume dipped during the 2006 and 2010 World Cups, according to UBS.

While concerns about a lack of liquidity during this period could lead to more volatile price swings, Teves and Tully said that it's also likely that the quiet market will need significant headlines to get silver prices moving in the first place.

-- Written by Joe Deaux in New York.

>Contact by Email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
GLD $116.16 0.00%
SLV $15.87 0.00%
AAPL $128.46 0.00%
FB $78.97 0.00%
GOOG $558.40 0.00%


DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs