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« Kinross Gold Options: Bought! | Main | Owning physical Gold »

Silver: A readers view

Silver: A readers view

From time to time we like to publish the work of others in order to bring you a different perspective on the silver market. Today one of our readers has submitted an article for your perusal, enjoy!

You may have heard by now that silver is a unique opportunity among investments. Although the purpose of this article is not to extol the virtues of silver, let me give you a few reasons why I like the metal:

· Silver is an excellent hedge against a falling dollar. Like gold, silver is a monetary metal and tends to rise quickly as the U.S. dollar and other currencies decline in value.

· Because silver is also an industrial commodity, most newly-mined silver is consumed by industry. This leaves little silver for new investment demand. As new investors enter this tiny market, additional buying pressure will only push prices higher.

· The world's major silver stockpiles have mostly been liquidated and this has led to a bit of a shortage. The U.S. Mint is rationing sales. Commercial mints are experiencing shipment delays. In March 2008, many mints were turning away buyers.

· Gold and silver are in raging bull markets. Precious metal bull markets often run for 10-15 years, and the last one in the 1970s took silver from $1.30 to $50, a 3,750% gain! A similar rise from silver's 2002 low of $4 would take silver to $150!

Does this mean that silver will go to $150 before this bull market is over? I have no idea.
But if the idea of $150 silver seems entirely unbelievable to you, then let me share two ideas that might make you a better investor. First, the future is inherently unbelievable, so don't rule anything out. Second, history is the best teacher, especially where investments are concerned. If silver made an inflation-adjusted high of $150 during the last bull market, then what makes it an improbable target this time around?

To read this article in full please visit Daniels web site by clicking this link.

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Reader Comments (2)

ok - if history is our teacher ... then we need for the "cornering-effect" two nice new HUNT-brothers !!!
perhaps these two will do:::
first = the sheiks from araby (and neighbours)
second = the state-wealth-fund from china (+ neighbours)...
IF they (yet?)walk that backdoor-silver-line(where are all the silver-bars) ... and THEN sometimes drive a nice attack against those BIG silver-shorties at the comex ...
then we could easy see $ 200-400 for silver ... especially with the help of our friend: the collapsing US-DOLLAR!
greetings from berlin/germany

June 12, 2008 | Unregistered Commenterjuergen

Silver Price, Silver will not go up big time until the US Govt. wants to change to the
Amero. They, along with the big banks, will keep crashing it to keep Faith in the $. Very few experts write about that. Sincerely, GJ Schmitz

June 12, 2008 | Unregistered Commenterg j schmitz

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