During the seventies in the U.S. the economy was characterized by a rising rate of inflation. The Hunt family, one of the richest families in Texas, decided to protect itself from the perspective of the dollar devaluation. Since U.S. laws prohibited the possession of gold, the brothers William Herbert and Nelson Bunker Hunt put all their bets of the silver and started accumulating all the silver that they can put their hands on. Back then In 1973 the silver price was $ 1.5 an ounce.
In 1979, the hoarding of metal accelerated thanks to interest from wealthy Arab traders. The prices began to rise, reaching $ 5. Thanks to the leveraging of significant quantities of futures contracts, the ascent became, in early 1980, unstoppable. The group headed by the Texans brothers now controlled 200 million ounces, an amount equal to about half of silver available in the world spot market.The prices soared to $ 52 an ounce. The huge bull run seemed successful.
But The Hunt brothers did not taken into account the reaction of the U.S. government which intervened dramatically raising margins on futures contracts on the 'COMEX' known as Commodity Exchange, Inc., a division of the NYMEX located in New York where contracts on aluminum, copper, silver and gold are treated. Thereby creating forced selling by fragile speculators who were in the bullish buying game through leverage. The same Hunt were overwhelmed.
In The COMEX traders still remember with concern the tragic day of 27 March 1980 which saw the incredible drop in the price of silver from 21.60 to $ 10.80. A drop of 50% in a few hours.
Related ETFs : Ishares Silver ETF (SLV), SPDR GOld ETF (GLD) , Powershares DB SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), GoldCorp (GG)
Silver to become a rare earth metal , it is Extremely undervalued. Silver to become extinct by year 2020 according to geologists only 300 millions ounces left! Silver is consumable industry metal it is used up : 95% gold ever found is still around 75% of silver is a by-product of mining other metal only 25% is primary product of mining,In 1480 the price of one ounce of Silver was equal to one ounce of Gold, Low supply, high demand Price to skyrocket get your silver and stay long!
Saturday, April 23, 2011
Silver is a GREAT BUY even at $50.
David Morgan on The Financial Sense Newshour 22 Apr 2011 :
Silver guru David Morgan explains what's may be driving the gold and silver market rally , the COMEX and the FED could conspire again in order to bring the silver price down ,Dave Morgan heavily promotes hold physical first and then to speculate in mining stock . Remember the hunt bros. 30 years ago they bought silver for $50 ,They will never see there money again. If silver rises too fast, their iron fisted rule will be over because gold will explode and the dollar will implode. So, they have absolutely every motivation and resource to artificially suppress the price of silver, yet it went up 70%+ last year. Confirmation of shortages, complete inversion (backwardation) of the futures market-Clearly, something is going on in the silver market.
Related ETFs : Ishares Silver ETF (SLV), SPDR GOld ETF (GLD) , Powershares DB SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), GoldCorp (GG)
Silver guru David Morgan explains what's may be driving the gold and silver market rally , the COMEX and the FED could conspire again in order to bring the silver price down ,Dave Morgan heavily promotes hold physical first and then to speculate in mining stock . Remember the hunt bros. 30 years ago they bought silver for $50 ,They will never see there money again. If silver rises too fast, their iron fisted rule will be over because gold will explode and the dollar will implode. So, they have absolutely every motivation and resource to artificially suppress the price of silver, yet it went up 70%+ last year. Confirmation of shortages, complete inversion (backwardation) of the futures market-Clearly, something is going on in the silver market.
Related ETFs : Ishares Silver ETF (SLV), SPDR GOld ETF (GLD) , Powershares DB SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), GoldCorp (GG)
Silver to outperform Gold in the coming years
The silver price is driven by inflation fears, the demands of industry and new forms of investment easier to negotiate.Pushing the silver price to exceeded $ 46 an ounce last week.The deflationary fears and the use of QE by the FED as a tool to stimulate exports devaluing the dollar, have pushed investors to diversify their assets, in activities to protect their wealth. The falling dollar has raised the price of silver to its maximum of the last 31 years.
While it is often called the gold of the poor, there are a number of factors that can raise the price of silver to outperform gold in the coming years. Unlike gold, silver is used in many industrial applications and in fact almost half of the silver mined goes for the industrial use. These applications include silver alloys used in batteries, electronic applications requiring a higher conductivity (such as televisions and microwave ovens) and as a catalyst for chemical reactions.
a lot of silver is still used in photography as well as jewelry and silverware. Silver also is becoming the metal used in solar panels because of its reflectivity of the light and its excellent conductivity.
With China at the forefront of solar technology, the demand for silver is growing while exports fell by 64%. China is the third largest producer of silver, with almost 13% of world production in 2009. China the third largest producer, preceded by Peru and Mexico have decided to reduce its silver export and it has instead become a net importer of silver . China's decision to reduce exports to meet growing domestic demand was one of the factors to push silver price higher
The report "World Silver Survey 2010, produced by the research company GFMS estimates that unless further developments in the cycle, supply / demand, the market will feature silver, worldwide, by an excess of supply, but this surplus of supply will be completely absorbed by the investment sector which remains the major driver to support the price of silver. The study of Gold-Silver ratio, the ratio between gold and silver price, suggests that silver in the future may make further progress and perform better. The relationship between gold and silver price is currently around 37, while in the past has averaged around 60.
The popularity of gold has brought the price of gold to rise to the highest of all time, investors begin to worry that the gold has become too expensive, so the price of silver began to be attractive as a Financial investment .
Related ETFs : Ishares Silver ETF (SLV), SPDR GOld ETF (GLD) , Powershares DB SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), GoldCorp (GG)
While it is often called the gold of the poor, there are a number of factors that can raise the price of silver to outperform gold in the coming years. Unlike gold, silver is used in many industrial applications and in fact almost half of the silver mined goes for the industrial use. These applications include silver alloys used in batteries, electronic applications requiring a higher conductivity (such as televisions and microwave ovens) and as a catalyst for chemical reactions.
a lot of silver is still used in photography as well as jewelry and silverware. Silver also is becoming the metal used in solar panels because of its reflectivity of the light and its excellent conductivity.
With China at the forefront of solar technology, the demand for silver is growing while exports fell by 64%. China is the third largest producer of silver, with almost 13% of world production in 2009. China the third largest producer, preceded by Peru and Mexico have decided to reduce its silver export and it has instead become a net importer of silver . China's decision to reduce exports to meet growing domestic demand was one of the factors to push silver price higher
The report "World Silver Survey 2010, produced by the research company GFMS estimates that unless further developments in the cycle, supply / demand, the market will feature silver, worldwide, by an excess of supply, but this surplus of supply will be completely absorbed by the investment sector which remains the major driver to support the price of silver. The study of Gold-Silver ratio, the ratio between gold and silver price, suggests that silver in the future may make further progress and perform better. The relationship between gold and silver price is currently around 37, while in the past has averaged around 60.
The popularity of gold has brought the price of gold to rise to the highest of all time, investors begin to worry that the gold has become too expensive, so the price of silver began to be attractive as a Financial investment .
Related ETFs : Ishares Silver ETF (SLV), SPDR GOld ETF (GLD) , Powershares DB SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), GoldCorp (GG)
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