Sïlvêr Néxt Big Buzzword Among Investors In 2011·

[midwesterner (banned)]

Silver Is The Next Big Buzzword Among Investors In 2011



goldcoinblogger.com/silver-is-the-next-big-buzzword-among-investors-in-2011/

Precious Metals! And, we’re a breath away from $31 an ounce for silver. Sprott Hedge Fund LP, is heavily weighted in precious metals and has generated an estimated 23% annualized return over the past decade.

He’s now so bullish on silver that he launched the $575 million Sprott Physical Silver Trust in November of last year as he believes that: “Silver will be the investment of the decade.” “I think that silver could easily get to $50 this year,”

Meanwhile, Sprott says the big catalyst for surging silver prices in the coming years will be exponentially increasing investment demand, which is already beginning to overwhelm existing silver supplies. The mining industry only produces around 800 tonnes of silver per annum. This is a relatively inelastic supply, regardless of silver prices, he adds.

As household investors are becoming increasingly jittery about the debasement of the U.S. dollar and other major currencies, they are loading up in record numbers on silver bars, coins and silver-denominated exchange traded funds, Sprott says.

However, there’s also a quantum shift in investment demand taking place among big players in the precious metals market, including India (which is aiming to increase its imports by about 77 million ounces per annum), and of course China, Sprott says. China’s net imports of silver were 112 million ounces last year. In 2005, they were net exporters of 100 million ounces. That’s a 200 million ounce shift in an 800 million ounce annual market that seldom ever grows because production hardly ever goes up. So where’s it all going to come from? We don’t know.

Sprott adds: Silver as a currency always traded in a ratio of around 16 to 1 compared to gold, when it was a currency in the U.S. and the U.K. The current ratio is 48 to 1. If we go back to a 16 to 1 ratio, the implied price for silver would be $85.62 (per ounce).

“Silver is the most undervalued metal as gold is breaking through its high from the early 1980’s of $850.00 an ounce silver still has not caught up to its high which is $50 an ounce.”

The most positive factor for the increased demand for silver going forward is still the Chinese. Looking to increase the relative value of the Yuan, reports show the desire of China to increase it holdings of precious metals. The Chinese central bank, the People’s Bank of China, is chalking out plans to buy gold and silver reserves these days. While the exact figures of China’s silver reserves are hard to come by, reports indicate China is the number one producer and consumer of silver, and any increase in demand from the central bank will surely influence prices of metals going north worldwide.

[midwesterner (banned)]

The industrial, electronic, and health care properties silver holds alone will make the price increase no matter what happens. WIN WIN WIN all the way around on this gem!!!!

[Deleted]

Silver better than gold....

And thanks to Aekara....i saw the light last year.

Enjoying the ride....but just not putting entire basket into metals....

[inhouston]

DUFFMINSTER - was soooo right about this - I remember about 18 months ago - Silver was trading at ~$12.00 / oz
He was encouraging people to buy

The Fall of Rome....
The devaluation of the Dinar ...


en.wikipedia.org/wiki/Denarius


Scary reading - currency debasement
I was just reviewing one of my old college texts about this last fall ........

[midwesterner (banned)]

Feb 11, 2011 17:34:08 GMT -5 @inhouston said:

DUFFMINSTER - was soooo right about this - I remember about 18 months ago - Silver was trading at ~$12.00 / oz
He was encouraging people to buy

The Fall of Rome....
The devaluation of the Dinar ...


en.wikipedia.org/wiki/Denarius


Scary reading - currency debasement
I was just reviewing one of my old college texts about this last fall ........

Glad to see you can look at the big picture and not the hype that so many are buying into. I've been in at I think it was about $7 an ounce when I started. Or spot of 7$ that is. Over $100 an ounce if not much more would put it closer to 1980's inflation adjusted high, and that's in the 1980's when our economy was much, much more solid standing and grounding unlike now.

$30 an ounce is peanuts compared to what it really should be at right now. Keep your eye on the prize. Don't follow day to day, that's just gambling with the paper pushers.