Archive for January, 2008

The price of silver edged closer and closer to $17 a troy ounce at the close of last week. The world economy is still fairly volatile but the price of precious metals remains a pretty fairly bullish market, continuing the run that started over two years ago.

As earnings come out for several large companies in the US the dollar, and more so the US economy will help dictate if the world still wants to keep it’s money safe in things like precious metals (although not always that safe).

Time will tell if the price of silver can surpass the $20 mark, which doesn’t seem too far fetched as the demand continues to grow around the world in newly developed nations such as China, and with the economy still so volatile.

The price of a troy ounce of silver is remaining around $16 even after the Feds came out yesterday and extremely lowered rates saving a potential disastrous day on Wall Street.

Silver and gold are sticking around and keeping your money in them right now could be a good thing. They hold real value and with the markets so volatile, may be the place to put your money.

Another thing to look at is how China will effect the price of silver and how their use of the precious metal will affect the price of a Troy ounce. With less silver on the market, if China buys and buys, the price should go up because of the need for silver.

Only time will tell, but silver may still be a good investment even at these long time highs.

The price of a Troy Ounce of silver dropped back below $16 today with US markets closed for the MLK holiday. No ETF’s are trading meaning SLV is also stagnant and will most likely see a drop off in price tomorrow when the markets open.

The price of silver was enjoying a few days above $16 while the world waited to see what the US economic outlook would bring. It appears investors from the rest of the world, also trading the precious metal silver, couldn’t wait much longer and the price of a Troy ounce has begun to pull back.

It will be interesting to see what the Fed’s news next week, to lower rates or keep them the same will do to the precious metals sector which usually raises with economic downturn or news indicating such. (Chances of the Fed raising rates next week are slim to none)

It seems as though we’ve written this article before? The price of silver rising as the dollar sinking? Yup!

But it’s true. As America tries to figure out if it’s economy really is in a downturn, or recession even, the dollar will continue to be weaker. This, as it usually does, makes people try and find safer investments for their money while the economy tries to shake out what’s going on.

As has been the case for hundreds if not thousands of years, precious metals hold their value as a medium of exchange. Therefore, people find safety in holding precious metals like silver and thus put more money into them.

If you don’t want to buy silver bars, as sometimes buying large bars of silver and gold can be a bit annoying, you could buy into these through ETF’s like GLD and SLV provided by iShares. These are backed by silver and gold and tend to follow the price of silver and gold pretty closely.

In this time of economic turmoil, you may be able to safeguard your money if you put it into precious metals like silver.

The price of silver saw $16 in mid 2007 but since has hovered around the $13 and $14 range. Until this past week, when it shot over $15 and began flirting with $16.

The US economy is down and for the most part investors are looking for other places to put their dollars. The fed is claiming to be looking at a half point reduction at the end of the month meeting which is sending a lot of investors into turmoil.

That’s a definite sign of a bad economy with a poor outlook.

For precious metals investors it’s a different story. Those of you who have been quietly buying stock piles of gold, silver, platinum and the like have seen your portfolios doing well. Even if you own mining stocks, or ETF’s like SLV, you’re doing well too.

As the year unfolds, taking your money out of those investments tied to the weakening dollar may be a good choice.

The price of silver, which peaked at near $16 an ounce back in November of 2007, a high not seen for over 20 years, is headed back to $16 as the dollar weakens and precious metals become the safer investment to preserve your capital.

Silver has had an impressive run over the past year, doubling in price and reaching those highs but has leveled off for the past few months as America tries to determine just how bad the subprime problem is.

As stocks retreat among this economic uncertainty precious metals, oil, and other companies dealing with the production of both become the best bets for making a few dollars. The ETF SLV has become a great little investment for some as it follows the price of silver and has reached an all-time high on these latest prices. Buying it is as easy as a stock and gets you into the game without having to buy silver off of your local pawn shop.