Investment Of The Decade
Will Silver be the Investment of the Decade ? It's a contrary investment to the U.S. dollar. The events we are seeing in Libya and the Middle East should be good news for the dollar yet the dollar is still declining.
When something declines on good news then it is normally time to sell and buy a contrary investment. Silver and Gold are the ultimate contrary investment to the dollar.
You could short the dollar but that's a difficult investment for many. Buying Silver or Gold is far easier.
The downgrade of Spain and worries about other periphery eurozone states is leading to euro weakness and euro gold consolidating above EUR 1,000 per ounce.
Fundamentals are screaming out that the price of Silver has to go higher.
The U.S. Mint in February sold as many dollars of Silver as they did dollars of Gold. Wow !!
"We currently sell 5 times more Silver Eagles than Gold Eagles" - Eric Sprott, Sprott Money
The Chinese used to export 100 million ounces of Silver a year now they import 112 million ounces Silver a year. In a market of 812 million ounces that's a 20% increase in demand.
The historical ratio of Silver to Gold is 16 to 1. The current ratio
is 40 to 1.
Backwardation currently implies a silver shortage.
Bloomberg) -- Silver May Rise to $40 in March on Tight Supply: Chart of Day
Silver may extend its gains to a 31-year high this year and be at $40 an ounce by the end of the month as supplies tighten and demand for the metal used more in industry than gold increases, said brokerage GoldCore Ltd.
The CHART OF THE DAY shows silver rallied more than fourfold since 2008 as gold more than doubled. Silver last month moved into backwardation on the Comex in New York, where nearer- dated contracts trade at a premium to those for later delivery, a sign of tighter supply now, GoldCore said.
"There's a lot of demand coming from Asia and China particularly" for industrial usage and as an inflation hedge, said Mark O'Byrne, executive director of GoldCore in Dublin. "There's tightness in the marketplace."
Silver and gold have advanced as concern inflation will accelerate and unrest in North Africa and the Middle East boosted demand for alternative assets to stocks and bonds. One- ounce silver coin sales from the U.S. Mint jumped to a record in January, and an ounce of gold bought as little as 39.3 ounces of silver on March 7, the least since February 1998. While gold climbed to a record this month, silver is below the $50.35 all- time high reached in New York in 1980.
Silver held in exchange-traded products backed by the metal gained 3.7 percent in the past month, data compiled by Bloomberg from four providers show. The metal, used in industrial applications such as solar panels and plasma screens, traded at $35.8675 an ounce at 5:15 p.m. in London yesterday.
"If the economy recovers, that's very good for silver because there will be huge industrial demand," O'Byrne said. "If the economy is doing badly then people will buy silver as a store of value."
Silver may extend its gains to a 31-year high this year and be at $40 an ounce by the end of the month as supplies tighten and demand for the metal used more in industry than gold increases, said brokerage GoldCore Ltd.
The CHART OF THE DAY shows silver rallied more than fourfold since 2008 as gold more than doubled. Silver last month moved into backwardation on the Comex in New York, where nearer- dated contracts trade at a premium to those for later delivery, a sign of tighter supply now, GoldCore said.
"There's a lot of demand coming from Asia and China particularly" for industrial usage and as an inflation hedge, said Mark O'Byrne, executive director of GoldCore in Dublin. "There's tightness in the marketplace."
Silver and gold have advanced as concern inflation will accelerate and unrest in North Africa and the Middle East boosted demand for alternative assets to stocks and bonds. One- ounce silver coin sales from the U.S. Mint jumped to a record in January, and an ounce of gold bought as little as 39.3 ounces of silver on March 7, the least since February 1998. While gold climbed to a record this month, silver is below the $50.35 all- time high reached in New York in 1980.
Silver held in exchange-traded products backed by the metal gained 3.7 percent in the past month, data compiled by Bloomberg from four providers show. The metal, used in industrial applications such as solar panels and plasma screens, traded at $35.8675 an ounce at 5:15 p.m. in London yesterday.
"If the economy recovers, that's very good for silver because there will be huge industrial demand," O'Byrne said. "If the economy is doing badly then people will buy silver as a store of value."
Ways to Invest In Silver
You can buy Physical Metals. Call us
Subscribe to a coin buying program.
Open an online brokerage account.
Open a spread betting account
Tonight Thursday 10th March:
Free Introduction To Spread Betting 7-9pm:MarketSpreads, 77 Sir John Rogerson's Quay, Dublin 2
Stock Markets
The QQQQ and the S&P are testing support. The tech companies all came in with worse than expected results this week. Could this be the fall we've all been expecting or will we get one last rally.
Ways to Invest In Silver
You can buy Physical Metals. Call us
Subscribe to a coin buying program.
Open an online brokerage account.
Open a spread betting account.
Tonight Thursday 10th March:
Free Introduction To Spread Betting 7-9pm:MarketSpreads, 77 Sir John Rogerson's Quay, Dublin 2
Call or email to book your place.
Happy investing,
Robert McManus
The Abundance Engineer
The Abundance Engineer
Email: rob@theabundanceengineer.com
Web: www.theabundanceengineer.com
Web: www.theabundanceengineer.com
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