Even crude oil and copper have a long way to go, even though they recently set price records. The reddish metal is one of the most useful on Earth. It is a very efficient conductor of electricity.
For those who have not acquired the precious metal, the obvious question is, should I buy now or is silver in bubble territory? No one can predict what happens next. After all, the last time we saw such meteoric price rises in the summer ofwhen stocks, commodities and home prices were reaching all-time highs, and precious metals were pushing higher than they had in twenty years, it ended very badly for anyone invested in just about any asset other than the US dollar.
Is there cause for alarm today? Are silver and gold, along with equities and commodities, destined to see yet another massive correction or collapse, as they did when the markets bottomed out in late and early ? The trigger for the last asset crash was blamed, in part, on rising oil prices and food costs, and we are very clearly approaching similar territory today.
The end result, as inwill likely be a collapse in asset prices. The above chart indicates that we are already seeing a decoupling in terms of value. Demand is not only up, but still rising. The US Mint in the months of January and February sold as many dollars of silver as they sold dollars of gold.
Supply and Delivery Challenges for Physical Bullion. In a market that trades roughly million paper ounces a day, when Sprott Asset Management was preparing to open their physical silver trust they had difficulty acquiring just 15 million ounces.
Other evidence direct from the US Mint further solidifies this point. Technological demand for silver is increasing. Among other things, silver is increasingly being used in computers, cell phones, and solar panels.
Silver is closing the margin on the gold-to-silver ratio. Historically, though not in recent decades, silver has traded at an average ratio of about to It is currently trading at about to-1, and just recently was trading at nearly to There is a silver shortage.
But, there is also a pricing disconnect occurring, that indicates supply problems, at least in the short-term, are prevalent. According to Sprott and other analysts, forward looking silver prices indicate that a silver shortage exists.
Though there are millions of ounces in the ground, backwardation can mean there is simply not enough of an asset available right now. As the US Federal Reserve and central banks around the world continue to deal with fiscal issues through monetary means, more and more paper currency hits the global marketplace.
As a result, more money is chasing fewer goods, with silver being one of those goods. This is a long-term year trend, and given the current policies of the Fed, which are no different than the policies of the last century, the US dollar will continue to depreciate. Gold for Main Street.
Silver is available in various weights and mintages, from one ounce government issue coins like silver eagles to one-hundred ounce poured bars from Johnson Matthey. With silver, anyone who has a desire to do so can become their own central bank.
Inflation is often identified as the single biggest reason for why precious metals like gold and silver rise. However, this is not always the case. There was simply no investor demand.
It was the advent of the internet and the general mood was positive. Stocks were rising and were the primary investment vehicle of choice during the technology boom.
Gold and silver took a back seat. After the technology crash and September 11th, however, sentiment changed. As boom times gave way to recession, precious metals rose. They continued to rise as governments, namely in the US, passed more restrictive laws on everything from personal liberty to capital investment.
When countries start restricting freedoms, people tend to shift capital. After the collapse ofmore and more investors began to realize that crisis is upon us.Gold One Operations VP Jon Hericourt discusses the company's Rmillion expansion project and the company’s strategy going forward.
Video and editing: Nicholas Boyd. Jul 08, · Three years after the Chilean mine collapse from which 33 men were rescued, an investigation has concluded that neither the mine’s owners nor the mining agency was responsible. Aug. 1, Live coverage as the attempted rescue of the 33 trapped miners gets under way at the San Jose mine near Copiapo, Chile.
The amazing story of the trapped Chilean miners and their incredible rescue that Publishers Weekly calls “a riveting, in-depth recounting of the events that held the world rapt.” In early August , the unthinkable happened when a mine collapsed in Copiapó, Chile, trapping thirty-three miners 2, feet below the surface.
Ecologic resource with articles on endangered salmon and salmon recovery plans in Idaho. Information on Snake River Dams and Columbia River Dams and their effect on spawning salmon.
Redfish Bluefish film information and script. An amazing story of survival is playing out in Chilean mine as 33 men, trapped for about three weeks, face as much as four more months underground. according to a report by the state's Bureau.