Best of the Week
Most Popular
1. Best Cash ISA Savings Account for Soaring UK Inflation - February 2018 - Nadeem_Walayat
2.Gold Price Forecast 2018 - February Update - Nadeem_Walayat
3.Bitcoin Crypto Currencies Crash 2018, Are We Near the Bottom? - Nadeem_Walayat
4.Trump Bubble Bursts, Stock Market Panic Dow 1175 Point Crash Analysis - Nadeem_Walayat
5.Gold Corrects, Bitcoin Markets Crash, Whilst Stocks Plunge - Nadeem_Walayat
6.US Treasury Bonds: Fuse to Light the Bonfire - Jim_Willie_CB
7.Dow Falls 666 Points As Cryptocurrencies Crash And Krugman Emerges From His Van - Jeff_Berwick
8.Stock Market Roller Coaster Crash Ride Down to Dow Forecast 23,000 - Nadeem_Walayat
9.Trading the Shadows - Oil, Dollar, Stocks, Gold Trend Analysis - B.R. Hollister
10.Stock Market Analysis: Baying for Blood - Abalgorithm
Last 7 days
National Identity Demands Restrictive Immigration - 21st Feb 18
Best Opportunities for Freelance Technical Writing Jobs - 21st Feb 18
4% US 10-year Treasury Note Yield Will Be a Floor Not a Ceiling - 20th Feb 18
Governments Are LYING about Their Gold Activities while Mining Companies Cower - 20th Feb 18
No Silver Lining Here - 20th Feb 18
Semi Conductor Stocks SEMI Bearish? - 20th Feb 18
The Prisoner Promised Land - 20th Feb 18
Best Car Dash Cam Review: Z-Edge S3 Dual Dash Cam - UNBOXING (1) - 20th Feb 18
How Inflation Reduces The Real Value Of Social Security Net Of Medicare Premiums - 19th Feb 18
Could Stellar Lumens be a Challenger to Bitcoin for International Payments? - 19th Feb 18
US-China Trade War Escalates As Further Measures Are Taken - 19th Feb 18
How To Trade Gold Stocks with Momentum - 19th Feb 18
Is a New Gold Bull Market on the Horizon? - 19th Feb 18
Stock Market Decision Point! - 19th Feb 18
An Inflation Indicator to Watch, Part 1 - 18th Feb 18
Get on Top Of Debt Before It Gets on Top of You - 18th Feb 18
Will the Stock Market Make a Double Bottom? - 18th Feb 18
5 Reasons Why Commodities Are the Investment Place to be in 2018 - 18th Feb 18
1 Week Later, Stock, Bond Market Risk Remains ‘On’ as 2 of 3 Amigos Ride On - 17th Feb 18
Crude Oil Prices: A Case of Dueling Narratives? - 17th Feb 18
Free 1000 Youtube Subscribers Services - YTpals, Subpals, SubmeNow Test - 17th Feb 18
How to Trade as We Near March Stock Market Top - 16th Feb 18
Bitcoin as Poison - 16th Feb 18
GDX Gold ETF Weathers Stock Market Selloff - 16th Feb 18
Casino Statistics and Demographics - 16th Feb 18
IS Today Thee Stock Market Turn Day? - 16th Feb 18
Huge SMIGGLE Shopping HAUL, Pencil Cases, Drinks Bottles, Back Packs, Toys.... - 16th Feb 18
Tesla Cash Keeps Burning at $320 a Share - 15th Feb 18
Big Conflict Ahead in the Financial Markets - 15th Feb 18
Stocks Extend Rally Off Friday's Low, But Short-Term Exhaustion Near - 15th Feb 18
Stock Market Out on a Limb... - 15th Feb 18
Things Only a True Friend Would Say About Gold - 14th Feb 18
Global Debt Crisis II Cometh - 14th Feb 18
Understanding Crude Oil Behavior - 14th Feb 18
Stock Market is Getting Scary... - 14th Feb 18

Market Oracle FREE Newsletter

Urgent Stock Market Message

Silver Prices to Soar, Like Gold on Steroids!

Commodities / Gold and Silver 2013 May 14, 2013 - 12:31 PM GMT

By: Money_Morning

Commodities

Diane Alter writes: It's hard not to get a bit nostalgic about silver prices.

I find myself reminiscing about April 2011 when the white metal ended the month at a sterling $48.70 an ounce after hitting an all-time intraday high of $49.51. That record surpassed the previous high of $49.45 set three decades earlier when the Texan Hunt brothers set out to corner the silver market.


Since the 2011 peak, the S&P has roared higher by some 50%, while the value of silver has tumbled 53%. That's not nearly as bad as the drop silver experienced between its Hunt brothers induced high on Jan 1, 1980 through its low on June 21, 1982, when silver fell a devastating 90%.

Those declines are a reminder of just how volatile the metal's price can be. But with great risk comes great reward, and we see record-breaking gains ahead...

Silver Prices "Like Gold on Steroids"

With the Dow Jones Industrial Average and the Standard & Poor's 500 Index continuing to log fresh milestones, silver investors feel left out.

Yet, as I longingly look at my silver collection, beyond the pining I see profound potential.

You see, silver doesn't typically move in step with equity markets.

In fact, it often moves paces ahead. Silver has outperformed the S&P on an annual basis 43% of the time, Ken Winans of Winans International, a California-based registered investment firm, recently told USA Today.

Moreover, because silver has a high beta, meaning it moves disproportionally compared to other metals in both bull and bear markets, it's frequently the favored metal because of its stellar possibilities.

While silver often trades in tandem with gold, precious metal experts like our resources expert Peter Krauth like to best describe the white metal as "gold on steroids."

Why Silver Prices Will Shine

The pullback in silver prices has provided a value-backed opportunity for savvy investors. Here's why.

  • Money printing by central banks, and the relationship with gold and silver, has broken down over the past year-and-a-half, with the metals trading sideways at best.

    But that zigzag trend can only be temporary.

    Although data suggests inflation is currently not a problem, everyone remains on inflation watch. The liberal printing of greenbacks will eventually lead to inflation, and bringing it down again may require a policy induced recession. Silver provides an inflationary hedge.

  • Robust silver investment demand continues to be a price driver. The U.S. mint sold a record 4,087,000 American Silver Eagles in April, shattering the previous all-time April sales record of 2.8 million in 2011 by a whopping 41%. In addition, the Mint is on pace to sell nearly 55 million Silver Eagles in 2013.

    Demand for physical silver has never been stronger. Dealers worldwide report depleted inventories and frenzied interest.

    "The increased demand for our products, particularly physical gold and silver, has been constant - strong enough to cause supply challenges in fact, which is to be expected," Jake Haugen, VP of sales for Texas-based Provident Metals told Money Morning.

    "As investors continue to take this opportunity to accumulate metals, it can be a struggle to keep popular products in stock," Haugen added.

  • While silver has an illustrious reputation for its use in coins and jewelry, silver's primary use is in industrial applications. Because it's the best thermal and electrical conductor of all metals, it's malleable, can be ground into powder, turned into paste, shaved into flakes, converted into salt, alloyed with other metals, and its photosensitivity makes it ideal for use in photography, silver is increasingly in demand. It's used for both old products and new innovations ranging from smartphones to solar panels to medicines.

    Accelerating manufacturing activities and an overall expansion in the global economy is expected to further boost silver's fabrication demand this year, according to precious metals research firm Thomson Reuters GFMS.

    Both industrial and investment demand for silver is growing faster than the annual increase in mining production growth. Available inventory is low and will only get tighter. The result will be a narrower supply-demand situation. 

Silver is unlike any investment at a bank, brokerage house or hedge firm. It's tangible and will always retain some value.

I am not always a glass-half-full kind-of person, but when I look at silver I see only its upside.

For more on silver prices in 2013, check out 5 Factors That Will Push Silver to $250 an Ounce.

Source :http://moneymorning.com/2013/05/13/silver-prices-the-best-is-yet-to-come/

Money Morning/The Money Map Report

©2013 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules