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Where silver is trading today represents a 35% decline from six months ago – which has led many investors to bail on the white metal in 2013.
Silver prices hovered around $22.78 in trading today in New York, almost $10 lower than where they started the year.
For more detail on what's next for silver, we asked Money Morning Global Resources Specialist Peter Krauth what investors should make of where silver is trading today.
While Krauth remains bullish on both silver and gold over the long term, he does see prices possibly falling a little more before a reversal.
"I do believe that most sellers have exited silver – but not all," Krauth told us Monday. "Since I'm still bearish on gold for the near term, I expect silver would simply follow gold down on any weakness."
Here are some reasons silver prices could dip into the high teens before bottoming.
First, silver didn't so much fall as it was pushed. The price of silver on the Comex has almost nothing to do with supply and demand dynamics. The price drops were the result of short selling raids orchestrated by JP Morgan, almost certainly acting as agents of the Federal Reserve…or at the very least they've been indemnified against loss by the Fed.
Second, "inflation" is the increase in the number of currency units created. The Fed controls how many dollars are created and they've been working overtime. Currency creation by central banks around the world is out of control. By definition, that means inflation is out of control.
This rapid and huge increase in the supply of currency has caused the PRICES of financial assets to rise dramatically.
When you say inflation is tame, I suspect you meant to say that PRICES for consumer goods and services haven't been rising dramatically. But by using the word "inflation" as shorthand for rising prices, you not only do violence to the language, you buy into the Fed's con game.
The inflation has already occurred and continues apace. The effects of same on the consumer are largely yet to be felt.
Finally, what Bank of America knows about fraud and other criminal activity puts them in a class all their own, and that's saying something, because there are a lot of world-class crooks in the banking business. Their rap sheet extends for pages and pages.
What they know about silver, however, is less than nothing.
Do you realize how silly their logic is? "Deceleration in global industrial activity, a steady recovery in the global economy…" is causing "investors" to sell silver. Really? Global industrial activity decelerates, and yet we get a steady global recovery? What an interesting planet these guys live on. That's pure propaganda from BofA. It's shameful that you pass it along with even commenting on the sheer stupidity of it.
Silver is the poor man's protection against central banks and governments gone mad.
BUY BUY BUY !!!
Unless you're speculating on short term price movements in the paper silver market, price shouldn't mean much to you. Just get as much as you can, especially now that they've forced it lower, effectively putting it on sale. Just get the real thing, not some phony proxy like a Comex futures contract or SLV or bank stored silver. Coins and bars in hand or and /or stored in private vaults overseas in jurisdictions were the rule of law still applies in some significant measure.
Nicely called! |:-)
Silver Bullion is intended by its physical properties (weight and bulk) to be stored, preferably in a secure vault or similar location. Its not mobile. Its not fungible. Except for "junk silver" coins, they are not of much everyday use.
So, if you store bullion overseas in a secure private vault, such as in Singapore, then what are you going to do if you suddenly need it? It is already becoming harder to sell gold in places like Hong Kong. For example, HSBC Bank in Hong Kong requires a seller of bullion (coins) to have an account AND be a Hong Kong resident (show recent documentation such as utility bill as proof). Of course, these newer restrictions are designed to counter money laundering by criminal masterminds masquerading as retail customers, right?
What is actually going on is each country is slowly becoming more restrictive and exclusive. As the global situation continues to deteriorate more barriers can be expected.
"Silver Bullion is intended by its physical properties (weight and bulk) to be stored, preferably in a secure vault or similar location. Its not mobile. Its not fungible. Except for "junk silver" coins, they are not of much everyday use."
You fail to mention the states (in the USA) that are now accepting silver as legal tender?