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Welcome to the "Wolf Creek Pass" School of Monetary Policy

I don’t know if you folks remember that hit ditty: a humorous tune about two truckers attempting to manhandle an out-of-control 1948 Peterbilt down the “other side” of Wolf Creek Pass – a death-taunting section of U.S. Highway 160 where the elevation drops a hefty 5,000 feet in a relatively short distance.

The song’s two characters – a truck driver named Earl and his brother, who’s his partner as well as the song’s narrator – are taking a flatbed load of chickens on a speedy trip down this winding, two-lane Colorado highway. After the narrator gives Earl the above-mentioned warning, the ancient semi’s brakes fail.

From there on down, the narrator tells us that the brothers’ trip “just wasn’t real pretty.” The truck careened around hairpins and switchbacks, and then raced at an uncontrolled 110 mph toward a tunnel with “clearance to the 12-foot line” – with chicken crates sadly “stacked to 13-9.”

The drivers and the runaway Peterbilt “went down and around and around and down ’til we run outta ground at the edge of town… and bashed into the side of the feed store – in downtown Pagosa Springs.”

Believe it or not, I started thinking about this funny old country tune the other night – right after I’d read a piece about QE3 and the U.S. Federal Reserve.

As zany as it first sounds, the parallels are striking.

  • Featured Story

    Will Silver Prices Keep Falling?

    silver

    As gold prices plummeted $200 in two days, silver prices fell about 14%, or $4, to below $24 an ounce.

    Our Money Morning resources expert Peter Krauth explained the reasons behind gold's fall, so we went back to him to find out the deal with silver prices. Will silver keep falling? Is it a buy at the lower levels?

    Here's what Krauth offered for investors.

    Money Morning Staff: Peter, are silver prices falling because gold fell, or are there other factors at play here?

    Peter Krauth: There are two factors.The first is that silver follows gold rather closely, and usually amplifies its behavior, both up and down. However, it can and does sometimes detach from gold and behave independently, but this is more of a rarity.

    The second is silver's industrial demand.

    To continue reading, please click here...


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  • investing in 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 is off the charts. In fact, it is so strong even the U.S. Mint is having trouble keeping up with demand.
    So how is it possible for silver prices to be falling?
    Here’s an insider’s take on this conundrum... Read More...
  • New ETF Makes Investing in Silver Miners Even Easier silver

    With silver looking even more alluring than gold lately, it's smart to consider investing in silver miners - and a new ETF gives investors one more option.

    The PureFunds ISE Junior Silver ETF (NYSE: SILJ), launched in November, differs from other silver mining ETFs in that it focuses only on junior silver miners.

    The PureFunds Junior Silver ETF joins just two other silver mining ETFs, the Global X Silver Miners ETF (NYSE: SIL) and the iShares MSCI Global Silver Miners ETF (NYSE: SLVP).

    While silver mining ETFs, like silver mining stocks and gold mining stocks, have not tracked the rise in price of the precious metals themselves - many are down anywhere from 10%-20% year to date - the tide is ready to turn.

    Many signs point to increasing silver demand in the months ahead, and in recent weeks more money has started to shift out of gold and into silver. Investing in silver mining ETFs is one way to get out in front of this trend before the rest of the crowd.

    "For 2013, I think silver, like gold, will set a new all-time nominal price record, likely reaching as high as $54 an ounce," Money Morning Global Resources Specialist Peter Krauth said in his 2013 silver price forecast.

    To continue reading, please click here…

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  • Is London Manipulating Gold and Silver Prices? Country England

    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.

    To continue reading, please click here...

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  • Investing in Silver Stocks: After Deep Plunge, These Miners Will Shine For the past two years, investing in silver miners has been much less profitable than owning the white metal itself. But that's changing - and fast. That means these three mining stocks are "on sale." Read More...
  • Investing in Silver Now is a Steal Silver ingot

    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.

    To continue reading, please click here...

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  • Investing in Silver: Price Dip is a Good Time to Buy Silver Spot Prices per Ounce

    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.

    To continue reading, please click here...

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  • Why Buying Silver Coins is One of the Hottest Trends of 2013 Silver Spot Prices per Ounce

    So far in 2013, buying silver coins has been one of investors' favorite ways to profit from a climb in the white metal's price.

    The demand for physical silver from small investors in the form of coins is really remarkable. A record 7.5 million ounces of silver coins were sold in January.

    To continue reading, please click here...

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  • 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%.

    To continue reading, please click here... Read More...
  • 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."

    To continue reading, please click here... Read More...
  • 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... Read More...
  • 2013 Silver Price Forecast: Silver Will Perform Like Gold on Steroids This past March, I asked a highly successful investment advisor what he thought about gold. Since he deals almost exclusively with very high net-worth individuals, his point of view was especially intriguing.

    He confided to me that many of his clients had been asking for gold and gold-related investments over the past few years. I can't say that I was surprised.

    But what he told me next simply shocked me.

    "Gold's much too volatile, it's too risky", he said. "Sure it's up, but I try to discourage my clients from investing in it."

    It simply floored me that he thought gold was too volatile. Gold is only up 580% since it bottomed in 2001, without a single losing year to date.

    That's not something you can say about the stock market or any other type of investment.

    I can hardly imagine what he must think of silver, as silver prices are up by 725% since 2001.

    Today, silver is trading around $34, but our 2013 silver price forecast now has the shiny metal going much, much higher.

    What will power that rise?

    Since it's slaved to its richer cousin, all the fundamentals for higher gold would apply.

    I wrote about them yesterday in my 2013 gold price forecast.

    As history has shown, silver moves almost in sync with gold, but exaggerates its movements, both on the up and down sides. That's why I like to think of silver as "gold on steroids".

    To continue reading, please click here... Read More...
  • 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...

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  • Why to Expect Higher Silver Prices Before 2013 As the week comes to an end, Comex December silver prices are trading at $32.45, a slight decline from yesterday. For the week, prices are off about 1%.

    Recent economic data and concerning news from abroad have hit precious metals this week, leading to their declines.

    Gold has been stealing headlines as fear surrounding the fiscal cliff drives investors to seek safer assets. Should Congress and the president not reach an agreement by early next year, this will provide an opportunity for gold to shine.

    But the white metal, with its volatility and recent high prices, can hold its own and also has the potential to increase in the short-term due to a few reasons.

    To continue reading, please click here... Read More...
  • Three Ways to Invest in Silver Before Prices Take Off It's been a volatile week, but silver prices are expected to rise in U.S. President Barack Obama's second term.

    Silver futures prices ended the week with a 5.7% gain. Silver for December delivery rose 36 cents, or 1.1%, on Friday to settle at $32.60 an ounce.

    With the fiscal cliff the next major topic for Washington to tackle, investors are pushing into safe havens like silver and gold to balance market uncertainty.

    Also with President Obama in office, U.S. Federal Reserve Chairman Ben Bernanke and his easy money policies will hurt U.S. dollar value for at least another year.

    "Since Obama was elected in 2008, gold is up 116% and silver us up a whopping 198%," saidMoney MorningGlobal Resources Specialist Peter Krauth. "Honestly, I expect a similar performance could well be enjoyed over the next four years."

    With that in mind, here are three ways to invest in silver with prices on the rise.

    To continue reading, please click here... Read More...
  • Silver Prices Give Shiny Future to this Mining Stock Silver prices enjoyed a bullish third quarter and will keep the rally going through the end of 2012.

    Reaping the benefits from this precious metal's increase has been silver exchange-traded funds (ETFs) and silver mining companies.

    One mining company, Silver Wheaton Corp. (NYSE: SLW), is clearly riding high on these good times.

    Back in July as silver was making its ascent, Silver Wheaton sat at $25. Today (Tuesday) it is trading at $39.12, with year-to-dates gains exceeding 34%.

    Don't worry investors, you haven't missed out: It also has a bright future.

    To continue reading, please click here... Read More...