Silver Investing

Silver Prices Rebound This Week

March 30, 2011 By evossman Leave a Comment

The price of silver looked like it touched on it’s highest level and was ready to recede with early week pull backs that brought the price of an ounce of silver back down to the $35 range. But that all looks like it’s going to change.

Silver hit a high of $38.18 per ounce and that looked like it was all she wrote. No $50 per ounce silver like I had predicted. But the $35 mark looks to provide some resistance even as the stock market and dollar rebound. It appears investors think the price of silver still has some upside potential.

So why does silver have such upside potential? Well, for the first time during this rally (aka the last 2 years) that we’ve seen, there appears to be evidence of a shortage in silver. If you believe this article then you may think that silver is not fulfilling the demand and that the price of silver, inevitably has to go up.

Although futures is really only one indicator as to the actually inventory of silver, the fact that there are so many contracts out there and that we’ve recently observed in the news that the iShares ETF SLV is adding to it’s silver stores, that could mean good things for those of you long silver.

Filed Under: Silver Investing, Silver Prices

Investing in Precious Commodities: Gold, Silver, and Copper

March 21, 2011 By Guest Leave a Comment

With the U.S. debt reaching an all-time high and the consistent devaluing of the dollar, many citizens are turning to investments in precious metals to stabilize their financial security in a shaky market.

Though the economy is in the midst of an economic upswing, there are many areas of the world, such as Greece, Spain, and Ireland, that are still facing hard economic times. Nasdaq’s website reported that precious metals stocks are on the rise, and over the last few months many people have been buying shares into these precious commodities to add desired stability to their investment portfolio.

As an investment, precious metals can be a solid choice, as investors have watched these commodities reach record multi-decade highs. Everyone wants to make gains in their portfolio, and metals seem to be a credible option. The Economic Times reported that gold has seen a 400 percent rise and silver a 480 percent rise in value over the last 10 years. This rise began, in part, due to its liquid value as an asset. Even though the most recent economic global crisis helped foster this increased demand, precious metals don’t devalue over time.

The market has seen many peaks for precious metals over the years, and back in the 1970’s gold went up almost 800 percent. Precious metals haven’t yet reached that point, but now seem to be rising toward it. A rise in the value of precious metals seems to follow a decline in the dollar, and as the U.S. government is faced with economic difficulties, gold, silver, and copper continue to surprise investors with their consistent gains.

The versatility of the precious metal’s market value is another factor that has made it so popular. It’s great for long or short-term investment purposes. Although, it’s not recommended by financial counselors that you put all of your capitol into precious metals, it’s definitely a good addition to any diverse portfolio, along with your mutual fund, IRA, or 401k investments. TimothySykes.com reported that silver penny stocks have some potentially high return rates for a low initial investment.

Protect your portfolio by investing in precious metals and other commodities to ensure that you’re prepared for any market downswing or adverse fluctuations in the stock market. Just go online, and seek the advice of an investment professional to help you get started.

Filed Under: Precious Metals, Silver Investing

The Price of Silver Will Hit All Time High $50 in 2011

March 5, 2011 By evossman 2 Comments

I’m calling it now. Not because I’m a fortune teller. I really have nothing on the line. I’m not an investment specialist, so if I’m wrong, I’m not going to loose customers. Worst case scenario is I get bashed in the comments section, and this blog gets more traffic and makes me more money.

With that said, I still feel strongly that the price of silver will reach $50 per ounce by the end of 2011. Why? Many reasons, and here they are.

Investors Have Lost Sight of Underlying Value

We’ve gotten bubble crazy and haven’t learned from our mistakes. There have been too many bubbles in shorter periods of time than ever before. And why? Because people need to make more money quicker to support their bloated lifestyles. We see, we want, we have.

We have stopped thinking about the underlying value things. Your internet stock that makes no money, your house, your expensive SUV, your ____ fill in the blank. People are buying and now investing on emotion. Which leads us to…

All-time Silver High is in Sight

All it will take is some of the large investing news sources to begin writing that silver is nearing the all time high of $48.50 and we’ll have every self proclaimed investor rushing for the quickest way to buy silver. ETFs.

They’ll buy into ETFs, ETFs will be required to buy more silver, demand for silver then goes up, and we’ll have higher prices because supply will go down. Now, having stock piles of silver in ETF holdings isn’t necessarily a bad thing.

Until people start taking profits, or mining companies catch up to demand. Watch out for a free-fall.

People don’t read full stories

This pulls the first two together. People don’t read that the silver high in the 80s was caused by Nelson and Herbert Hunt using mad amounts of leverage to purchase silver and inflate the price and that since then, leverage buying of commodities is limited.

Instead they’ll read that we’re close to the high, that’s it. 140 words or less, try and pack a value statement into 140 words or less.

The price of silver will hit $50 this year, nuf said.

Filed Under: Silver Investing, Silver Prices

How Do You Short the Price of Silver?

January 27, 2011 By evossman 2 Comments

Are you going to go out and borrow a bunch of silver bars to try and sell short silver in the hopes that the price of silver per ounce will go down? That’s a little unlikely.

Instead, keeping with our theme lately of Silver ETFs, you may want to check out this offering from ProShares. It’s ZSL and it’s their Ultra Short Silver ETF. Now Ultra Short ETFs, for those that don’t know, are ETFs that look to do double the opposite of what the underlying is, in this case silver. Or, straight from the ProShares description.

ProShares UltraShort Silver (the Fund) seeks daily investment results that correspond to twice (200%) the inverse (opposite) of the daily performance of silver bullion as measured by the United States dollar fixing price for delivery in London.

That means, $1 down in the price per ounce of silver, and $2 up in the price of ZSL ProShares Ultra Short.

For those precious metals bears out there that think the price of silver and gold and other metals will certainly fall from the historic rise that is going on, can now put their money where their mouth is. This is the perfect way to maybe offset some of those silver bars you have laying around…

Filed Under: Silver ETF, Silver Investing Tagged With: ZSL

Silver Mining ETF Investment with SIL

January 26, 2011 By evossman Leave a Comment

Silver has been in the news along with gold and other precious metals as solid investment opportunities amidst all the market turmoil that we continue to see with the NASDAQ, NYSE and more. In addition to that, inflationary pressure is causing investors to jump out of the dollar and other currencies and into the old standbys.

We recently wrote about the price of silver through the new year and saw that current pull back may be good for the long term outlook, that some are pegging at near double the current price of silver. One way we looked at and suggest as a good way to get into buying silver is by looking at the silver ETF SLV. That’s a good way to own silver straight up.

But what if you want to get into mining stocks. Which one do you choose?

Well, ETFs to the rescue again and the silver ETF NYSE:SIL is a great way to keep a little of your portfolio invested in the companies that serve to profit a lot if the price of silver does in fact double by the year end.

Now we’re not sure if that will be the case, but as the world looks to find a stable place to put it’s money, SIL may be the way to go.

Filed Under: Silver ETF, Silver Investing Tagged With: SIL

Price of Silver is Breaking New Ground for Investors

November 15, 2010 By evossman 1 Comment

The price of silver has finally started to follow the crazy ride that gold, that “other” precious metal, has been on for the past 2 years.

Ever since the economy collapsed the price of gold has sky-rocketed. Normally you would think with moves like it has been making, there would be a pull back. Maybe that’s what investors were thinking, and just didn’t want to get into silver, golds ugly cousin.

But instead, gold has kept it’s climb going, heading above $1200, $1300, and now $1400 an ounce. Well, the precious metals investors have finally decided that maybe silver is a good investment after all. Since the end of summer silver has jumped considerably as interest rates have stayed low and investors are hedging against the inevitable inflation that will come from it.

All this investing in silver has driven the price of an ounce up over $26. With fears that the recession is going to continue for a while, it would appear that investors are going to keep the price of gold and silver, and other precious metals, moving higher and into their highest prices ever.

Filed Under: Silver Investing

Tough Day for SLV, Tough Day for Stocks

August 30, 2010 By evossman Leave a Comment

Equities, Commodities, and yes, even precious metals went through a beating these last few weeks and ETFs like NYSE:SLV was no exception. The silver ETF was down today on a day that the DOW droped 140 points, the S&P 15 and the NASDAQ 33. It was truly a tough day to be an investor today, even in the economic downturn safe precious metals like gold and silver.

These metals have usually been a safe haven for those looking to invest outside of the equities and exchange markets that have been on a roller coaster after breaking 10,000 on the DOW early this summer. No one can quite tell where the market will go and that even goes for these types investments.

Although we’re still bullish on silver and other precious metals (yes even gold which has been up way too much even for our taste), this pull back of the market could spell a september just like every other september lately. For those that don’t know, September has historically been a pullback month and a month of crashes (although I’m sure someone can dig up info contrary to that) it’s what we’ve observed lately. Maybe it’s a back to school pullback.

All those parents realize how much education costs and taking money out of equities seems like a good idea. Well if silver follows suit, you may find some buying opportunities in there.

Filed Under: Silver ETF, Silver Investing Tagged With: SLV

Why Investing in Silver is Smart

August 26, 2010 By evossman 2 Comments

Investing in anything has it’s ups and downs and investing in precious metals like silver and gold is no exception to this rule. Silver is a commodity and the price fluctuates just like any other commodity. With the stock market taking wild swings a lot of investors are looking to invest in tangible items that still hold some real world value.

For one, being a precious metal silver is sought after for it’s glimmer in relation to making jewelry and other things of that nature. It’s a status, although small status when compared to gold or platinum, but none-the-less, a status symbol to own and wear things made of silver.

Silver is also used in electronics, although not as widely as other metals. Also, silver is used in industrial processing of many things as coatings and as additives to many processes that the world needs. So the use for silver isn’t going anywhere. And when the use of such a metal doesn’t go anywhere, the price someone is willing to pay for that won’t go anywhere either.

Why do we like silver? Because it’s cheap, relatively speaking. Gold has had a major run up this past year and silver has stayed stagnant. Will it catch up? We’re not sure. But we do feel as though it’s a little safer bet right now than it would be to put your cash into stocks. Who knows where those things are headed?

Filed Under: Silver Investing Tagged With: Silver Investing, SLV

Silver Reaching New Highs

May 17, 2010 By evossman 1 Comment

The previous metal market is enjoying all the volatility in the equities markets around the world lately. With all eyes on the Euro decline, what’s happening in Greece, and if Asian markets are to follow this world-wide downward trend, metals like gold and silver are enjoying the ride.

After large upswings in the price per ounce of silver early last year, the price of silver has cooled down, until recently. Silver is now touching all-time highs again with the price per ounce nearing the $19 mark. ETFs like NYSE:SLV are reaching new highs with volume on that fund seeing larger than normal spikes.

Mining stocks, which have been a bit boring as of late, have also seen upswings in their prices, although with no real reason for such a turn. Investors are looking to put their money in more traditionally safe vehicles like silver trusts and silver bars and that is just where things look like they’re headed.

Filed Under: Silver ETF, Silver Investing, Silver Prices

How to Buy Physical Silver

May 2, 2010 By LinkSales 3 Comments

Demand for physical silver has soared due in part to strong industry and a desire for physical metals for investment portfolios. But not all physical silver is created equally. Investors need be careful to buy only physical metals that are worthy of investment, not collection.

Numismatic Metals

New investors in physical metals often make the mistake of purchasing numismatics, or those coins, bars, medallions, and ingots that are meant for collection rather than investment. Generally, numismatics earn their value from their rarity, perceived value, or from their appeal as art. Numismatic coins can often sell for multiples of the worth of the metals themselves, making them poor investments.

Investment Grade Silver

Choices in investment grade silver are plenty. From junk bags of pre-1964 coinage to rounds and coins both foreign and domestic, there are a myriad of opportunities for the silver investor. These silver products are better suited for investment because their value is derived directly from the amount of silver in the product. For example, a 10oz bar will sell for 10x the current silver price whereas a rare American silver coin can sell for hundreds of times the value of its silver content.

Mind the Premium

Unlike exchange-traded funds or futures, physical metals do carry a premium over the current spot price. This premium, usually 2-3%, helps cover the cost of transport, storage, and marketing of the metals itself where the futures exchanges don’t have as much overhead. The premium isn’t all a lost cause since you’ll be able to recoup the premium upon sale of the silver, as all physical metals carry a premium over spot. They have for the last century, and they will for the next.

Filed Under: Silver Investing Tagged With: Buying Silver, Silver Bars