Silver investing is what this blog is all about. Buy silver, invest in silver, get into silver! That’s what we say every day. But why do we say that?
Well, it’s not because we have to say that, we’re not analysts, we’re not paid by any of the big silver ETFs, we just like silver! One interesting point that we found in an article over at business 24 – 7 is about one fact.
The fact that silver is the only commoditiy that hasn’t jumped above it’s all time high during this commodity boom. Yes you read that right, every thing else has jumped above it’s all time high but silver. The precious metal silver is behind. And from what we’ve heard (only third hand so do your research) the silver supply is low and demand stays the same or is growing.
So why the low price?
We’re not sure. But it just adds to the reason why you should buy silver.
It’s quizzical why silver has stayed this way during this period of time. It’s a long haul investment at this point but not much of a risk. As demand increases, it’s sure to rise though. When is the question.
I think the low price is due to government manipulation of commodities prices, especially metals, to save the dollar for as long as possible, mostly until the elections are over I think. What do you think?
Silver is the only commodity that has not reached its all time nominal high. In real terms (that is, if you adjust for inflation) the price of Gold, Silver and Platinum are all well below their historical highs, in the case of silver by about 20 times.
Great blog! I’m also fascinated by precious metals so I keep a blog as well.
Have a look, and if you’d like to exchange links please leave a comment for me.
Regards,
Paul
Silver seems like the a great investment, as the dollar of the U.S will collapse anytime.
I added this blog post to this social site. Do you think a Digg-like/social site for silver investors is a good idea?
Silver is a good investment and has a higher return than gold. If you look at silver compared to gold – historically, by percentage, yields better returns.
silver will rise very soon, it is stable and in demand.
Its true Silver does seem like a fantastic investment opportunity at this day and age. I don’t see the US dollar lasting much longer either.
I agree the economy has collapsed, you have to invest in better resources. Great Video to watch
Watch Here!
I think everyone should own some silver to protect oneself from fiat currency and irresponsible governments.
http://hubpages.com/hub/Why-You-Should-Be-Investing-in-Silver-Now
Silver is on the rise, and nothing can stop it at this point, least of all the weakening USD.
From marketdepth:
Growth in Money Supply, Shrink in Silver Supply
Since 1980, the supply of currency, bank deposits and other cash-like financial assets that the US government calculates as M2 has grown between five and six times. Zero-maturity money has grown by over nine times. The St. Louis Fed website offers wonderful charts outlining the spiraling growth in these monetary aggregates.
In lock-step with this increase in money supply, salaries, house prices (even now), stock market indices and many other assets have risen in sympathy. Some factors have risen more quickly (baseball salaries, for instance, are up 22X), while others have risen more slowly (a brand new Pontiac is only up about 5X). However, silver prices are actually lower in 2009 than they were in 1980, when the metal traded hands at an average price of US$20 per oz. Adjusting the start point of this analysis can offer somewhat different results, but it is very difficult to conclude other than silver has lost considerable value share over the past few decades.
In stark contrast to the growth in money supply, the “silver supply” has been shrinking. In 1975 silver inventories were 5 billion ounces, currently they are down to about one billion ounces. Mine production has not kept pace with silver consumption.
Full article at
http://marketdepth.typepad.com/marketdepth/2009/06/the-value-in-silver-1.html
Yes i read these article http://libertysilver.se/pages.php/page/silver_as_investment i think silver is going to take a big jump.
serious buyers check this out
smartmoneyfx. com
silver will definately have a run soon it cant stay at these low prices for much longer
Thanks for your insightful posts..
I believe that silver prices are artificially low due to a large concentrated naked short position. It’s not a coincidence that the day silver reached its multi-decade high of over $21 per ounce in March of 2008, was the same day Bear Stearns failed. Bear Stearns was a holder of a massive short position in silver. In our opinion, this was likely a naked short position because there is nobody in the world who owns such a large amount of silver for Bear Stearns to have borrowed.
The reason why I believe the Federal Reserve was so eager to orchestrate a bailout of Bear Stearns, is because Bear Stearns was on the verge of being forced to cover their silver short position. Because the silver market is so small and tightly held, if Bear Stearns was forced to cover their short position, silver prices could’ve potentially rose to $50 per ounce or higher overnight. The world would’ve seen how economically unstable our country is and confidence in the U.S. dollar would’ve rapidly deteriorated.
JP Morgan still holds the silver short position they inherited from Bear Stearns. The concentrated naked short position in silver today is the largest short position in the history of all commodities, as a percentage of its market size. Eventually, JP Morgan will have to cover this short position or it could jeopardize their existence.
The best evidence that the short position in silver is naked and not backed by real silver, is the differential between what silver trades for on the Comex and what real people are willing to pay for physical silver on eBay. Every hour on eBay, there are dozens of one ounce silver coins selling for approximately $25. That’s about a 43% premium over the current spot price of silver. With so much demand for physical silver, we doubt the silver shorts in the paper market will be able to manipulate prices downward for much longer. A major short squeeze could be right around the corner and silver could take off in a way that shocks even those who are most bullish.
It’s great to see others passionate about the same topic. Even with the recent dip in silver, it still remains a great investment for now.
I don’t think silver will remain below an all time high for very long. Industrial use is on the increase and many investors are viewing silver as a more affordable investment option than gold. Silver above $30 per ounce will be the new normal.