Silver

The smart money has been moving into precious metals during dips in recent months as many view the sector as one of the last places to find real value given that stocks, bonds, real estate, and nearly every other asset class, has been inflated to lofty levels by the FED's easy money policies since 2009. I believe we are witnessing one of the last great buying opportunities in precious metals. When prices start moving higher again, there will be little time to jump aboard the train. The downside risk at this juncture pales in comparison to the upside potential.

What has been missing during this 3+ year decline in PMs has been what we have pointed to on several occasions, a form of ending action that sends a message that a change in trend is in progress. Last Thursday and Friday’s sharply higher volume and wide ranges lower is the kind of activity that leads to the end of a trend. There is not enough to say it has happened, to be sure, but the end game is starting to step up and be closer to a resolve of ending of the down trend. [Let me explain further.]

The $15 zone in silver looks to be an interesting point at which to start buying. Here's why.

Few investment opportunities arise in our lifetime like silver. The stage is set for a percentage gain of extraordinary magnitude! Forget the popular refrain of “Got Gold?” and make some additions to your portfolio to take advantage of the coming silver supernova!

Sit back and take a look at the economic & financial situation in the world today and I wouldn't be surprised in the least that you will conclude that it makes sense to own some physical gold and/or silver - and there couldn't be a better time than now, with both down so much in price, to start accumulating some as finances permit.

Has anything changed for silver? [Not really.] The only change is that the media is telling us the economy is doing better; hence, investors are not buying into the precious metal sector. The reality of the situation is that the supply of silver in the market is declining, while demand is rising by the double-digits. [As a result, in my opinion,] pessimism towards the “poor man’s gold” has gone too far. In fact, I’m expecting silver to provide investors with a better return than gold bullion over the next 24 months. Below is my explanation why.

The continuing upward trend in the gold/silver ratio (continuing weakness in silver relative to gold) is not in conflict with the view that gold commenced a cyclical bull market last December and is working its way through a lengthy basing process. Here are the details:

Silver currently looks inexpensive compared to crude oil, the S&P 500 and the size and rate of increase of the national debt suggesting silver is ready to rally.

Silver output continues to rise, mainly through recent primary silver mine openings, although by only a small annual percentage which suggests that demand may increase at a more rapid rate keeping silver in supply deficit.

…Have gold and silver seen a bottom yet, and is there a turnaround soon in the cards? No, and no…It is still business as usual as gold and silver languish around recent lows.  There is no date one can mark on the calendar that points to an end of the Rothschild dominance over Western fiat currencies and their suppression of …