Best of the Week
Most Popular
1.UK General Election Exit Polls Forecast Accuracy - Nadeem_Walayat
2.What's Next for the Gold Price? - Axel_Merk
3.UK House Prices Correctly Forecast / Predicted Conservative Election Win 2015 - Nadeem_Walayat
4.15 Hours to Save England from SNP Scottish Nationalist Dictatorship - Election 2015 - Nadeem_Walayat
5.Exit Poll Forecasts Conservative UK Election 2015 Win - Nadeem_Walayat
6.Gold And Silver China’s Pivotal Role: More Questions Than Answers. Not So For Charts - Michael_Noonan
7.Conservative Win 2015 UK General Election, BBC Forecast of 329 Seats - Nadeem_Walayat
8.Investing and the Lollapalooza Effect - Niels C. Jensen
9.Gold Price Target - Rambus_Chartology
10.Gold Price Nearing An Important Pivot Point - GoldSilverWorlds
Last 5 days
UK Immigration Crisis Could Prompt BREXIT, Propelling Britain Out of EU Despite German Factor - 22nd May 15
America Superpower 2016 - 21st May 15
Stock Market Secular Versus Cyclical Investing - 21st May 15
Banking Stocks Break Out with Higher Bond Yields - 21st May 15
The Tech Portfolio Built to Beat the Market - 21st May 15
Gold “Less Sexy” Than Bitcoin … For Now - GoldCore on CNBC - 21st May 15
The Russia-West Rivalry in the Balkans - 21st May 15
The US Dollar and the Precious Metals Complex - 21st May 15
Gold GLD ETF Drawdown Continues Unabated - 21st May 15
Who’s Killing the Stock Market? - 21st May 15
Your Best Way to Profit from the Narrowest Market in 20 Years - 21st May 15
Government Regulation and Economic Stagnation - 20th May 15
It’s Time to Hold More Cash and Buy Gold - 20th May 15
Choppy Asian Stock Markets - 20th May 15
Countdown to Global Financial Collapse - 20th May 15
Will Interest Rates Ever Rise? - 20th May 15
How to Cash in on Amazon Stock’s Amazing Cloud Success - 20th May 15
Three Hidden Forces Pushing Crude Oil Price Back Up - 20th May 15
U.S. Housing Market Strong Numbers in Perspective - 20th May 15
Greece Debt Crisis - Obama Has A Big Fat Greek Finger - 20th May 15
Now Is the Time to Own the Oil & Gas Leaders - 20th May 15
UK Deflation Warning - Bank of England Economic Propaganda to Print and Inflate Debt - 20th May 15
Trading Gold and Silver along with the Pros - 19th May 15
Gold Ticks Higher as London Housing Market Crash Looms? - 19th May 15
Global Stock Market, Commodities Group Analysis - 19th May 15
How Stock Investors Could Profit from the Dark Net Pattern That Few Others See - 19th May 15
The Patriot Act is now USA Freedom Act - 19th May 15
Investing in Europe? 5 Critical Insights to Boost Your Portfolio Now - 19th May 15
Gold Price Trend Forecast - 19th May 15
Stock Market Continues Defying Gravity, Dow New All Time High - 19th May 15
Are Gold and Interest Rates About To Take Off Higher? - 18th May 15
Nikkei Japanese Stock Index Set To Get Smashed - 18th May 15
Silver Price Projections For 2020 - 18th May 15
The IMF Leaks Greece, Institutions Forcing a Debt Default - 18th May 15
Europe's Stocks Bull Market Continues After Correction - 18th May 15
European Banks Vulnerable Today As 2008 Financial Crisis - 18th May 15
Payments, Currencies, and Broken Money - 18th May 15
Learning to Trade Markets - Dealing with Losing Trades - 18th May 15
Stock Market Sell in May and Go Away - Last Hurrah - Take2 - 18th May 15
The No. 1 Reason Stocks Will Climb Higher - 17th May 15
Gold, Silver Distorted Markets, Financial Sophistry, and Moral Hazard - 17th May 15
Stock Market CAC40 Trend Forecast - 17th May 15
Stock Market Diagonal Pattern Nearly Complete - 16th May 15
Gold And Silver - Elite's Game Of Jenga In Place. Your Move - 16th May 15
You’ll Never See a Better Moment to Invest in China - 16th May 15
Are Gold and Silver Stocks Breaking Out? - 16th May 15
War On Cash - Why the IRS Seized All the Money from a Country Store - 16th May 15
Is China Economy a Fire-Breathing Dragon or a Dragon on Fire? - 16th May 15
Silver Buying Only Starting - 16th May 15
Why Opinion Pollsters Got UK Election 2015 Badly Wrong - 15th May 15
Double Black Diamond - What a Bond Bear Market Looks Like - 15th May 15
This “Bubble” Is Set to Kick Off New Energy Profits - 15th May 15
German Gold Demand "Spikes"- Investment Demand Surges 63% - 15th May 15
How GDP Metrics Distort Our View of the Economy - 15th May 15
McDonald's Future Is Hard to Digest (NYSE: MCD) - 15th May 15
Dry Bulk Shipping Index Chart Analysis Update 2015 - 15th May 15
Economic Expansion Ahead? World Stock Markets Analysis - 15th May 15
Why Not Tell Greece How To Run A Democracy? - 15th May 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Biggest Debt Bomb in History

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

© 2005-2015 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

Biggest Debt Bomb in History