Best of the Week
Most Popular
1.The Brexit War! EU Fearing Collapse Set to Stoke Scottish Independence Proxy War - Nadeem_Walayat
2.London Terror Attack Red Herring, Real Issue is Age of Reason vs Religion - Nadeem_Walayat
3.The BrExit War, Game Theory Strategy for What UK Should Do to Win - Nadeem_Walayat
4.Goldman Sachs Backing A Copper Boom In 2017 - OilPrice_Com
5.Trump to Fire 50 US Cruise Missiles To Erase Syrian Chemical Attack Air Base, China Next? - Nadeem_Walayat
6.US Stock Market Consolidation Time - Rambus_Chartology
7.Stock Market Investors Stupid is as Stupid Goes - James_Quinn
8.Gold in Fed Interest Rate Hike Cycles- Zeal_LLC
9.The BrExit War - Britain Intelligence Super Power Covert War With the EU - Nadeem_Walayat
10.Marc Faber: Euro to Strengthen, Dollar to Weaken, Gold and Emerging Markets to Outperform - MoneyMetals
Last 7 days
Billionaire Investor Paul Tudor Jones Says Stock Market Valuation Is “Terrifying” And He Is Right - 26th Apr 17
The Great BrExit Divides - Britain, USA and France - 26th Apr 17
10 Facts That Show Our Taxes Are Worse Than You Thought - 26th Apr 17
What Trump’s Next 100 Days Will Look Like - 26th Apr 17
G20: SURPASSING THE 2nd GLOBAL STEEL CRISIS - 26th Apr 17
What A War With North Korea Would Look Like - 25th Apr 17
Pensions Are On The Way Out But Retirement Funds Are Not Working Either - 25th Apr 17
Frank Holmes : Gold Could Hit $1,500 in 2017 Amid Imbalances & Weak Supply - 25th Apr 17
3 Reasons Why “Spring Forward, Fall Back” Also Applies To Gold - 25th Apr 17
SPX may be Aiming at the Cycle Top Resistance - 25th Apr 17
Walmart Stock Extending Higher - Elliott Wave Trend Forecast - 25th Apr 17
Google Panics and KILLS YouTube to Appease Mainstream Media and Corporate Advertisers - 25th Apr 17
Gold Price Is 1% Shy of Ripping Higher - 25th Apr 17
Exchange-Traded Funds Make Decisions Easy - 25th Apr 17
Trump Is Among The Institutionally Weakest National Leaders In The World - 25th Apr 17
3 Maps That Explain the Geopolitics of Nuclear Weapons - 25th Apr 17
Risk on Stock Market French Election Euphoria - 24th Apr 17
Fear Campaign Against Americans Continues Nuclear Attack Drills in New York City - 24th Apr 17
Is the Stock Market Bounce Over? - 24th Apr 17
This Could Be One Of the Biggest Winners Of The Electric Car Boom - 24th Apr 17
Le Pen Shifts Political Landscape- The Rise of New French Gaullism  - 24th Apr 17
IMF Says Austerity Is Over - Surplus or Stimulus - 24th Apr 17
EURUSD at a Critical Point in Wave Structure - 23rd Apr 17
Stock Market Grand Super Cycle Overview While SPX Correction Continues - 23rd Apr 17
Robert Prechter Talks About Elliott Waves and His New Book - 23rd Apr 17
Le Pen, Melenchon French Election Stock, Bond and Euro Markets Crash - 22nd Apr 17
Why You Are Not An Investor - 22nd Apr 17
Gold Price Upleg Momentum Building - 22nd Apr 17
Why Now Gold and Silver Precious Metals? - 22nd Apr 17
4 Maps That Signal Central Asia Is at Risk of War - 22nd Apr 17
5 Key Steps For A Comfortable Retirement From Former Wall Street Trader - 22nd Apr 17
Can Marine Le Pen Win? French Presidential Election Forecast 2017 - 21st Apr 17
Why Stock Market Investors May Soon Be In For A Rude Awakening - 21st Apr 17
Median US Household’s Wealth Has Declined by 40% Since 2007 - 21st Apr 17
Silver, Platinum and Palladium as Investments – Research Shows Diversification Benefit - 21st Apr 17
U.S. Stock Market and Gold, Post Tomahawks and MOAB - 21st Apr 17
An In Depth Look at the Precious Metals Complex - 20th Apr 17
The Real Story of China’s Strong First-Quarter Growth - 20th Apr 17
3 Types Of Life-Changing Crisis That Make You Wish You Had Some Gold - 20th Apr 17
The Truth is a Dangerous Thing - 20th Apr 17
2 Choke Points That Threaten Oil Trade Between Persian Gulf And East Asia - 20th Apr 17

Market Oracle FREE Newsletter

Why 95% of Traders Fail

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

© 2005-2016 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

Catching a Falling Financial Knife