Thursday , 21 November 2024

Pessimism Regarding Silver Has Gone Too Far – Here’s Why (+2K Views)

Has anything changed for silver? [Not really.] The only change is that the media is10 Ounce Silver Bullion Bars 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 above introductory comments are edited excerpts from an article* by Michael Lombardi (profitconfidential.com) entitled A Rational Look at Silver.
Lombardi goes on to say in further edited excerpts:
According to a report produced for the Silver Institute by Thomson Reuters GFMS, the silver supply (production) dropped by 2% in 2013…[yet] demand for silver in 2013 increased 13%…Demand for silver coins and bars jumped 76% in 2013 over 2012! As silver prices fell, investors bought more silver.
Looking at the [chart below it is obvious that]…, while gold bullion prices still remain above their December 2013 lows, silver prices have broken below their 2013 lows and are down more than 10% year-to-date.
Gold - Spot Price Chart
If gold bullion prices were to return to their high of $1,900 an ounce, the gain from today’s gold bullion prices would be 60%. If silver were to return to its high of $50.00 an ounce (achieved in 2011)—the gains from silver’s current trading level would be 194%.
The more the precious metal mining sector is shunned by investors, the greater the opportunity. The shares of well-known silver miners are selling for deep discounts. I don’t believe these prices will stay low for much longer.
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.
Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
*http://www.profitconfidential.com/gold-investments/silver-offers-more-value-than-gold-in-this-market/

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2 comments

  1. “Yes, we now have digital currency (DC) to hedge against the risk of fiat currency.”
    Oh? So just what hedge is offered up as good as toilet paper currency? Not much to value there.

    “(DC)can be used to purchase items over the Internet and there is no risk of confiscation”
    Right, we all know how reliable internet access is. Who needs to confiscate what simply needs to be made inaccessable?
    The “counterparty risk” for DC is just as real as fiat.
    Silver, or gold for that matter doesn’t have it.

  2. Has anything changed for silver?

    Yes, we now have digital currency to hedge against the risk of fiat currency. It can be used to purchase items over the Internet and there is no risk of confiscation.