Silver Price History
Why Silver and Gold Prices Are Falling
Metals started the week in the red, leading investors to ask why silver and gold prices are falling today. Money Morning Capital Wave Strategist Shah Gilani joined FOX Business' "Varney & Co." to answer that question.
He told host Stuart Varney about the big trading move that pushed metals down today. He also explained why he would keep buying gold.
Shah also recommended a stock that pays a 10% dividend yield and says the stock will be "safe" as long as the housing market remains stable.
Hear Shah's recommendation and his thoughts on why silver and gold prices are falling in the following video.To continue reading, please click here...
Good Stocks to Buy Now as this Sector Begins its Lucrative Recovery
Billionaire investor Wilbur Ross earlier this month once again suggested that the shipping industry is ripe for investment, presenting a handful of good stocks to buy now.
Ross knows how to spot a beaten-down sector and turn its brightest opportunities into mega-profits. This "vulture investor" previously invested in troubled sectors like coal, steel, and auto parts and cashed out years later with enormous gains.
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- Silver Prices in 2013: The Reasons for a Bold Forecast Silver prices in 2013 have slumped, but don’t get discouraged. To understand the price outlook in metals, you have to look at these driving forces. Read More...
5 Factors That Will Push Silver to $250 an Ounce
All bull markets go through periods of consolidations and corrections. And precious metals are no exception.
There has been plenty about gold's swan dive, but less talk about silver. And at this point there's more potential for silver than gold...significantly more.
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...
How to Buy Silver Coins
Silver is one of the hottest investments this year, leading many investors to ask how to buy silver coins before the white metal soars to new highs.
Indeed, investors have been buying silver coins at such a rapid pace, the U.S. Mint announced Jan. 17 it had sold out of 2013-dated American Silver Eagles - just 10 days after opening sales to authorized dealers.
Opening day sales for the hugely popular bullion coins on Jan. 7 hit a record 3,937,000 coins. The tally of total sales over the 10 days the coins were available exceeded 6 million.
Sales resumed Jan. 28 after the Mint replenished its inventory, but on an allocated basis with limited orders. The Mint used the same method in 2009 and 2010 when demand among people buying silver coins also outstripped supply.Read More...
Silver Prices: $50 by 2013?
Silver prices kicked off October reaching a six-month high near $35 an ounce as investor interest has been rekindled in the white metal.
Renewed investor affection for the precious metal in the past few months is in sharp contrast to investor interest in silver over the last year and a half. Many precious metals investors had largely stayed away from silver in that time frame after some had got caught up in its volatility. Silver had touched a 30-year high in April 2011 before plunging 35% in just a few short weeks.
Silver has climbed 35% from its June low just above the $26 an ounce level. This performance made it the top performing star in the commodity universe for the third quarter, with hints of more fireworks to come.
Now it looks as though silver prices will tear into the $40-plus range, nearing $50 an ounce before 2013.
Money Morning Global Resources Specialist Peter Krauth predicts silver prices will reach $48 - $49 by year's end, and hit "north of $60" by spring.
That's why he refers to the white metal as "gold on steroids."
Part of the answer to why silver has done so well recently is the launching of QE3 by the U.S. Federal Reserve. Silver rose 53% from December 2008 through March 2010 after QE1. It climbed 24% after QE2 in the period ending in June 2011. Now we have QE3.....
As Michael Cuggino, who manages about $17 billion at Pacific Heights Asset Management, told Bloomberg News, "In this accommodative monetary policy scenario, silver seems to be trading as an alternative currency."
But the real reason behind the rise in the price of silver goes deeper than just QE3 - or, as some in the market jokingly call it, QE Infinity.
Here are some of the other reasons the price of silver is headed to $50 by 2013.
Don't Miss Out as Silver Prices Surge to $150 an Ounce
Silver prices had an exciting run-up in the year ending in April - they almost tripled, briefly touching $50 an ounce before settling back down to the low $30s.
Now, silver prices are back above $40 an ounce. That may have you feeling the urge to sell - but don't.
Resist the temptation to sell silver because this recovery is for real, and it has much further to go.
In fact, I anticipate silver prices will peak at $150 an ounce within the next 12-18 months.
The reason is simple: With central banks around the world pushing lax monetary policies, prices for all commodities - gold and silver in particular - will invariably rise.
We've already seen this happen with gold hitting a record high $1,923.70 an ounce on Sept. 7. And when gold goes higher, silver quickly follows.
That's reflected in something called the "gold/silver ratio," which shows how many ounces of silver it takes to buy one ounce of gold. Traditionally, this ratio acts as a price barometer for the two precious metals. And if you look at it right now, it's easy to see that $150 silver isn't far in the offing.
The Gold/Silver RatioGold and silver prices traditionally move together because both are considered stores of value in inflationary times. And while we think of gold as the premier store of value, remembering the 19th century gold standard, other societies - notably the Spanish empire in the Americas, Imperial China and Mogul India - used the silver standard and are hence more focused on silver when inflation threatens.
In the 19th century and before, silver and gold prices maintained a fairly steady relationship to each other in a ratio of 16 to 1. Silver depreciated against gold in the 20th century. However, it also acquired industrial uses, which is something gold never did (the two metals are chemically very similar, but silver is much cheaper and hence more suitable for industrial uses).
The gold/silver ratio briefly approached 16 to 1 in the 1980 precious metals bubble (silver peaked at $50 per ounce, gold at $875) but then fell back beyond 50 to 1, with gold trading around $250 an ounce in the late 1990s, while silver was below $5 an ounce.
Gold was the first to take off after 2000. And by 2010, gold traded well above $1,000 an ounce while silver traded at $12-$14 an ounce - a ratio of close to 80 to 1. This was unsustainable, and it resulted in the price rise of 2010-11, which at its peak took silver to $50 an ounce and about a 30 to 1 ratio to the price of gold.
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