best silver stocks
-
With the White-Hot Demand for Coins, Why Are Silver Prices Falling?
It's one of the biggest mysteries in finance right now.
I mean, it's a real head-scratcher ...
On one hand, demand for silver coins has been off the charts. With so many investors wanting to swap currency for silver, neither the U.S. Mint nor the Royal Canadian Mint has been able to keep up with purchase requests.
In fact, the U.S. Mint actually had to suspend sales of the "Silver Eagles" just a couple of weeks into the New Year - and it still smashed the all-time monthly sales record in January by selling 7.5 million of the hugely popular coins.
And that insane demand carried over into February and March.
-
Is London Manipulating Gold and Silver Prices?
As we've explained before, manipulation of gold and silver prices is happening right here in the United States.
Our Global Resources Specialist Peter Krauth interviewed silver market analyst Ted Butler last year, who explained how big financial institutions were using high-frequency trading to depress silver prices.
And earlier this month, Money Morning Chief Investment Strategist Keith Fitz-Gerald detailed how these same big firms were toying with retail investors in the gold market.
Now, in the wake of the Libor scandal in London, which involved the rigging of interest rates by certain banks, it looks like prices in other markets such as gold and silver could be being rigged in a similar fashion.
-
Investing in Silver Now is a Steal
Lately there has been quite a divergence in the behavior of those investing in silver compared to those holding gold.
One group is running scared, while the other is calmly stocking up.
It looks as if many of the weak hands holding gold in the form of exchange-traded funds (ETFs) are giving up and liquidating their positions. A record $4.1 billion was yanked out of gold ETFs in the month of February, a record high, according to the BlackRock ETP Landscape report. This figure was almost double the previous record set in January 2011 of $2.6 billion.
But it is quite a different story in the silver market, according to South Africa's Standard Bank. For the week ended March 1, silver ETFs added nearly 68 metric tons to their position. That brought the total silver held within 110 metric tons of an all-time record high.
That compares to 59 metric tons of gold being liquidated from gold ETFs in that same time frame.
Demand for Silver Eagle coins from the U.S. Mint also continues apace. February sales did not match January's record rate, but were still a very robust 3,368,500 ounces.
So, why is investing in silver becoming the favored trend?
The answer is simple: Silver is cheap.
-
Investing in Silver: Price Dip is a Good Time to Buy
Good news for those investing in silver: The price slump is ending, making now a good time to buy.
Silver prices have slid since the start of 2013, and the white metal's down nearly 9% so far this year. Silver, which had hit a record high of $49.79 an ounce in April 2011, was trading for $29.36 Tuesday afternoon.
That leaves plenty of room for prices to climb - and plenty of profit for investors who buy on the dips.
Money Morning Global Resources Specialist Peter Krauth said recent weakness in gold and silver prices "has created a great opportunity for true contrarian investors" to add to their positions.
"We may not have hit the absolute near-term bottom, but I think the odds are good that we're pretty close," Krauth said as the sell-off accelerated in February.
-
GFMS: Silver Prices to Climb 38% in 2013
The world's most respected precious metals consultancy, Thompson Reuters GFMS, came out last month with its 2013 forecast for silver prices.
After being bearish on silver prices over the past few years, GFMS has come around and predicted a good year for silver investors in 2013, with gains as high as 38%.
Philip Klapwijk, global head of metals analytics for Thomson Reuters GFMS, said "a rebound in investment demand stemming from continuing loose monetary policies is expected to drive silver prices towards and possibly over $50 during 2013."
Klapwijk said buyer interest may not match that of 2011, but it will rise compared to 2012.
"We wouldn't be surprised also if silver's gains outpaced gold's, not only as the usual result of lower liquidity but also as memories of early 2011's painful losses (in silver) continue to fade," said Klapwijk.
Here's why silver could be the precious metals star of 2013.
To continue reading, please click here... -
How to Buy Silver: The Best is Yet to Come in 2013
While gold, with its sky-high prices, gets most of the media attention, investors should be just as interested in how to buy silver.
Silver turned in a solid performance in the second half of 2012, rising from a June 28 low of $26.13 an ounce to its recent reading above $33.00. And, to steal a line from poet Robert Browning (or, if you prefer, Frank Sinatra), "the best is yet to come."
At least that's how Money Morning's Global Resources Specialist Peter Krauth sees it. He thinks the "poor man's precious metal" should set a new all-time nominal price record in 2013, potentially moving as high as $54.00 an ounce.
Krauth cites four factors in making this prediction:
- The continued high reading in the gold/silver ratio, which indicates silver is undervalued relative to gold based on historical norms.
- The prospect that four more years of President Barack Obama's policies will prove inflationary, devaluing the U.S. dollar and thus boosting the prices of hard assets like the precious metals.
- Growing investment demand as more fund managers purchase the metal to back a growing number of new exchange-traded fund (ETF) offerings.
- A continuing increase in industrial demand for silver, which is used in everything from solar-power generation and water purification to hygiene and specialized medicine.
Here are a few tips on how to buy silver.How to Buy Silver
As we told you in last week's story on how to buy gold, purists view holding actual physical precious metals like gold and silver as the only true means of hedging against inflation and gaining an effective long-term store of value.
To continue reading, please click here... -
It's Not Just Investor Demand Pushing Silver Prices Higher
You've heard that silver prices are expected to increase amid growing demand for the precious metal, as investors worried about central bank and government spending policies seek alternatives to stocks.
Money Morning Global Resources Specialist Peter Krauth said in his 2013 silver price forecast that the white metal, which closed at nearly $33 an ounce Wednesday, could hit $54 an ounce next year.
In fact, Krauth said he likes to think of silver as "gold on steroids."
But investors have largely overlooked another key factor that will contribute to higher silver prices over the next couple of years.
That's global industrial demand for silver, which will start to take off in 2013.
To continue reading, please click here... -
Why to Keep Betting on Higher Silver Prices
As November comes to an end, silver prices continue to hold their luster even in this down week.
On Tuesday, spot silver increased to $34.26 an ounce, its greatest level since the middle of October, before it dropped to $33.76.
Silver traders have hit the sidelines as economic news such as fiscal cliff discussions, the Greek bailout and an appreciating U.S. dollar have been a drag on the white metal.
James Steel, HSBC metal analyst said to Reuters of the current prices, "We believe gold and silver prices will tend towards consolidation, as investors await further developments on the U.S. fiscal cliff negotiations."
But don't worry silver bulls, there's still enough good news to keep you happy.
To continue reading, please click here...
