Post by jeffolie on Nov 13, 2009 16:48:42 GMT -6
China and India are not buying silver as a reserve against the Dollar.
The investing public does not see headlines or even footnotes about silver.
Silver is still the poor man's precious metal and not the metal of central banks.
Silver did peak when gold peaked in 1980 when the public was excited by the Hunt Brothers speculation. Until the investing public and middle class find silver exciting, silver will not peak and soar. When silver does peak and soar, traders will need to be very nimble to capture their gains.
I expect the Dollar and fiat crisis to peak in early 2013 with the rejection of Obama and the Democrats in the 2012-13 elections. The new administration will react in a backlash against the Dollar crisis along with the world's bond vigilante to make interest rates soar resulting in the end of industrial and investment interest in gold and silver because the Dollar will be finished collapsing and be replaced.
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Gold's much higher value prompts great efforts to recycle it. In fact, "all the gold mined in the world ever is still with us, but a huge amount of silver has been used in photography, mirrors and other industrial uses in the last 200 years," according to the GoldCore report. "The low price of silver makes recovery and recycling uneconomic."
So "industrial demand has been outstripping mining supply for most of the last 20 years, driving above-ground supply to historically low levels" and silver production has been flat in recent years, while demand has been increasing, the report said.
As a result, refined silver stocks are near an all-time low, with stocks dropping from around 2.2 billion ounces in 1990 to around 300 million ounces today, it said.
"At one time, silver was more expensive than gold, but that was in the days of Egypt's Pharaohs," said Phillips.
And while no one wants to say that will ever happen again, most analysts expect that silver prices will soon react to gold's recent gains.
Prices for silver could spike to $18.25 or even $20 between now and December, according to CPM Group.
GoldCore expects to see prices at well over the nominal high of $50 an ounce and, eventually, surpass the inflation-adjusted high of some $130 per ounce in the coming years.
"Ultimately, silver tends to exhibit its largest spurts in the latter stages of a major gold up legs," said Zeal's Wright. "Once speculators and investors start to get excited about this metal, it can really fly -- and fast."
www.marketwatch.com/story/poor-mans-gold-may-be-an-investors-treasure-2009-11-13?pagenumber=2
The investing public does not see headlines or even footnotes about silver.
Silver is still the poor man's precious metal and not the metal of central banks.
Silver did peak when gold peaked in 1980 when the public was excited by the Hunt Brothers speculation. Until the investing public and middle class find silver exciting, silver will not peak and soar. When silver does peak and soar, traders will need to be very nimble to capture their gains.
I expect the Dollar and fiat crisis to peak in early 2013 with the rejection of Obama and the Democrats in the 2012-13 elections. The new administration will react in a backlash against the Dollar crisis along with the world's bond vigilante to make interest rates soar resulting in the end of industrial and investment interest in gold and silver because the Dollar will be finished collapsing and be replaced.
===========================================================
Gold's much higher value prompts great efforts to recycle it. In fact, "all the gold mined in the world ever is still with us, but a huge amount of silver has been used in photography, mirrors and other industrial uses in the last 200 years," according to the GoldCore report. "The low price of silver makes recovery and recycling uneconomic."
So "industrial demand has been outstripping mining supply for most of the last 20 years, driving above-ground supply to historically low levels" and silver production has been flat in recent years, while demand has been increasing, the report said.
As a result, refined silver stocks are near an all-time low, with stocks dropping from around 2.2 billion ounces in 1990 to around 300 million ounces today, it said.
"At one time, silver was more expensive than gold, but that was in the days of Egypt's Pharaohs," said Phillips.
And while no one wants to say that will ever happen again, most analysts expect that silver prices will soon react to gold's recent gains.
Prices for silver could spike to $18.25 or even $20 between now and December, according to CPM Group.
GoldCore expects to see prices at well over the nominal high of $50 an ounce and, eventually, surpass the inflation-adjusted high of some $130 per ounce in the coming years.
"Ultimately, silver tends to exhibit its largest spurts in the latter stages of a major gold up legs," said Zeal's Wright. "Once speculators and investors start to get excited about this metal, it can really fly -- and fast."
www.marketwatch.com/story/poor-mans-gold-may-be-an-investors-treasure-2009-11-13?pagenumber=2