SILVER

[Pixel8r]

I hold some SLW too. Bought at $3.15 sold 3/4 when at 100% profit going to carry on holding the free shares for a few years I think, wish I had held on to some more.

 

[Pixel8r]

Silver poised to outperform gold

Wed, 18 Mar 2009

 

The Hennessee Group, an adviser to hedge fund investors, believes silver is currently under-priced relative to gold and is therefore advising clients to accumulate positions in the precious metal.

 

Charles Gradante, co-founder of the Hennessee Group, says: 'While we see both gold and silver as safe haven investments, particularly as a hedge against the longer term risk of hyper-inflation, we believe gains in silver will outpace gold.

 

'The gold to silver ratio has reached elevated levels in recent months due in large part to gains in gold. And while we expect gold to continue experiencing gains, we anticipate silver to outperform on a relative basis and lead to a reversion in the gold to silver ratio.'

 

The Hennessee Group believes the supply/demand dynamics of silver present a strong case for the appreciation in the precious metal going forward, specifically due to its increased global industrial demand (caused by emerging markets) outpacing supply.

 

Gold benefited from a flight to quality in 2008 as the economic crisis deepened and investors fled risk assets for the safety of gold and treasuries; two of the few assets classes to experience gains for the year.

 

Silver on the other hand suffered along with most other commodities over the same time period as fears of the deepening recession mounted. For the year, gold gained approximately +6 per cent while silver dropped over -25 per cent.

 

Gradante says: 'The dispersion in performance between these two precious metals has led to a drastic widening in the gold to silver ratio from 50x in early 2007 to its current level of 72x, the highest level since 2004.'

 

Despite recent concerns regarding weakening economies and a subsequent pullback in silvers' price, the Hennessee Group believes the long term supply/demand story for silver remains intact.

 

'Silver is unique relative to most other precious metals,' says Gradante. 'The demand for silver not only stems from its use as a raw material to manufacture jewellery and silverware, but also from its numerous industrial applications. In fact, over 50 per cent of silver demand comes from the industrial sector.

 

'Silver is utilized across a wide range of industries including imaging, electronics, jewellery, coinage, superconductivity and water purification. While we could see a slowdown in demand in the near term due to the current global recession, we believe longer term demand will continue to rise and support higher silver prices.'

 

Hennessee Group says an additional source of demand that will continue to impact global demand for silver is the market for silver exchange traded funds. The iShares Silver Trust, created in 2006, has grown in popularity in recent years and has led to growth in the amount of silver backing the shares issued to investors.

 

Hennessee Group says growth in the silver ETF market is likely to continue going forward and will put additional strains on the supply/demand dynamics for silver.

 

'There has been a recent pullback in commodity prices, particularly precious metals,' adds Gradante. 'However, the Hennessee Group believes this is a short term correction in a longer term upward trend, that is likely to be exacerbated by the recent aggressive fiscal and monetary actions, and the impending inflationary pressures they will create.'

 

[gasket37]

don't know if anyone heard the 1st hour of financialsense.com this week but at about 50 minutes in J.P. interviews jeff christian

 

J.C. gave the following figures for the demand for silver for investment purposes:-

 

70 million ounces in 2007

100 million ounces in 2008

180 million ounces in 2009 (projected)

 

according to JC there are only two years when demand was higher 1980 (unsurprisingly!)

with investment demand of 222 million ounces & also in 1965 (he didn't specify the amount).

 

 

 

 

 

[G0ldfinger]

From:

[Catflap]

Both silver and platinum look better value than gold atm:

 

http://stockcharts.com/h-sc/ui?s=$SIL...id=p94531117998

 

http://stockcharts.com/h-sc/ui?s=$PLA...id=p94531117998

 

 

 

[G0ldfinger]

Both silver and platinum look better value than gold atm:

...

Palladium ...

[nicejim]

Nice vid, GF. Why should silver's price be based on its rarity compared to that of gold though? The cost to produce must come into it if gold and silver do become generally accepted as money.

 

Incidentally, talk of shortages is off the mark. SLV has so much silver it can't fit it all in its vault...

http://gata.org/node/7318

 

 

http://gata.org/node/7319

the U.S. Government, operating through its usual agent, JPMorgan Chase, "intentionally cheated silver investors worldwide of many billions of dollars bought time for those who didn't see it coming - so they could protect themselves - during the fourth quarter of 2008 and longer

 

I hope everyone enjoyed the Dry Powder Moment today and appreciates the effort these bankers go to to get us our cheap metal.

[Mr Pipples]

All Talk, No Action By: Theodore Butler - http://news.silverseek.com/TedButler/1238529622.php

 

Last week, Commissioner Bart Chilton of the CFTC responded to those of you who wrote to him about the silver manipulation....

[HPCsoYESTERDAY]

Hmmm, CID out of brits.

 

i have been waiting on the sidelines to get these at the right price - today I put in my order.

 

the reply, Sorry Mr Agent we have none!!!!!

[HPCsoYESTERDAY]

silver on the trendline?

 

 

[Mr Pipples]

Silver to outperform gold: http://www.ft.com/cms/s/0/734d5664-22be-11...?nclick_check=1

[HPCsoYESTERDAY]

Silver to outperform gold: http://www.ft.com/cms/s/0/734d5664-22be-11...?nclick_check=1

 

View of the Day: Silver to outperform gold

 

Published: April 6 2009 16:27 | Last updated: April 6 2009 16:27

 

Silver looks set to outperform gold in the second half of the year as strong investment demand compensates for a slump in industrial demand, says Eugen Weinberg, commodities strategist at Commerzbank.

 

“Silver weakened in the second half of 2008 not only in absolute terms, but also relatively to gold as a result of its more widespread industrial use – but has recovered noticeably since the beginning of the year,” he said. “The price of silver is currently about 9.5 per cent higher than at the start of 2008.” By contrast, gold is slightly lower.

 

Mr Weinberg notes that a sharp rise in investment demand for silver has largely gone unnoticed. “The largest silver exchange-traded fund, iShare, now has a stock of just under 8,300 tonnes. Overall, silver inventories at exchange traded funds total around 10,000 tonnes.”

 

He also says interest in silver coins is remarkable. “The high demand for the American Silver Eagle is probably due to it being a more affordable purchase for the general public than its gold counterpart.”

 

Mr Weinberg says a tight market is also being caused by the supply side, because mining production, which accounts for about three-quarters of total silver supply, will at best stagnate and possibly even decline.

 

“After a weaker second quarter we expect silver prices to rise to $16 an ounce, from current levels of around $12. We also see more scope for the price to rise than to fall.”

[dietcolaaddict]

 

Just bought more silver. Seems as good a dip as any to increase my exposure.

 

People seem more likely to buy a house when the sun is shining. I hope my trip out the office this afternoon in the beautiful spring sunshine hasn't induced the same effect on me!

 

 

 

[wren]

Just bought more silver. Seems as good a dip as any to increase my exposure.

 

People seem more likely to buy a house when the sun is shining. I hope my trip out the office this afternoon in the beautiful spring sunshine hasn't induced the same effect on me!

At under €10 per ounce I regard silver as cheap.

 

I'm slowly buying and hoping for a further downward price correction.

 

[HPCsoYESTERDAY]

i wouldn't say i agree with this article entirely, but it is interesting how the number of similar articles seem to have appeared lately; maybe, just maybe poor mans gold is about to catch up on the ratio............

 

http://www.stuff.co.nz/business/personal-f...-rise-of-silver

 

For many years consumers and investors have favoured gold, but persistently high prices mean the time has come for silver to reassert its credentials as a jewellery material and a store of value.

 

Signs that the economic downturn may at last be reaching a floor is also expected to help silver -- used in industry -- to pick up the momentum it needs to outperform gold.

 

The debate about the relative merits of gold and silver has been triggered by news the world's largest consumer, India, for the second month running in March did not import any gold, and may even have become an exporter.

 

"In India you have people who can only afford silver and people who will only buy gold, but there are a large number of people in the middle who will rotate from gold to silver," said Ashok Shah, chief investment officer at London & Capital.

 

That phenomena is likely to be repeated in other countries as unemployment, salary cuts and potential tax rises take their toll on consumer spending, analysts said.

 

Gold used as a hedge against financial uncertainty, flew through $1,000 an ounce to an 11-month high on February 20 at the height of the banking crisis.

 

Prices have tumbled about 13 percent to around $875 an ounce since then, while silver has fallen 16 percent to about $12.20 an ounce from a 6-month $14.60 peak in February.

 

"Silver over the last 30 years has been the poor cousin. In the first half of the last century gold and silver were on a similar footing in terms of monetary value and their roles as safe havens," Eugen Weinberg, an analyst at Commerzbank, said.

 

BIGGER BENEFITS

 

A measure of value is the ratio of gold to silver prices, which in the last century fell as low as 14 and compares with levels around 70 now -- suggesting gold is overvalued.

 

"The ratio could drop to between 40 and 50 in the medium term," Weinberg said. "People who cannot afford to buy gold for jewellery will buy silver."

 

Since the early 1980s the ratio has averaged about 65 and mostly ranged between 30 and 100.

 

Figures around 100 were last seen in early 1991 after Iraq's invasion of Kuwait fuelled security concerns and a surge in oil prices raised the spectre of rampant inflation, boosting gold's allure as a hedge against financial uncertainty.

 

Worries about price pressures in the pipeline because of the large amounts of money being pumped into the economy by central banks and governments are expected to support prices of both metals over the next few years.

 

But in the short term silver and gold prices could slip as investors switch back to riskier assets such as equities on expectations of stronger growth and industrial output.

 

If a real uptick in growth does materialise, silver will remain relatively unscathed as it is used in industries such as electronics, aerospace and defence.

 

"Gold will suffer ... Silver will too, but this impact may be relatively muted by the recovery in industrial demand," said David Thurtell, an analyst at Citigroup.

 

"We would suggest that the gold/silver ratio will push down towards the 50-55 level by the end of third quarter."

 

Industrial demand for silver, including from the photography industry, is reckoned to be about 65 percent of total global supplies estimated at 895 tonnes. For gold industrial and dental demand the figure is about 11 percent of supplies estimated at around 3,880 tonnes, according to consultants GFMS.

 

Part of the boost for silver will come from investment demand. With gold prices still near $900 an ounce holdings of exchange traded silver funds are expected to rise.

 

The iShares Silver Trust, the largest silver-backed exchange traded fund listed in New York, holds a record 8,413 tonnes, a gain of more than 20 percent since early January.

 

That compares with a more than 40 percent rise in the SPDR Gold Trust, the world's largest gold-backed exchange traded fund, with holdings near record highs of 1,127 tonnes.

 

"Some people may be slightly more positive on silver to outperform gold on strong investment demands," said Adrian Koh, an analyst at Phillip Futures.

[HPCsoYESTERDAY]

void

[tl8177]

void

 

Also in the telegraph today:

 

Is silver the new gold?

 

http://www.telegraph.co.uk/finance/persona...e-new-gold.html

[G0ldfinger]

http://jsmineset.com/index.php/2009/04/08/...-trader-dan-99/

Silver drawdowns out of the Comex continue on their torrid pace with another 2 million ounces coming out yesterday. Whoever is taking the silver out of the HSBC warehouses has managed to draw down stocks from near the 80 million ounce mark (registered category) in December of last year to yesterday’s 63 million ounce mark. That is no small feat. I think it no coincidence that the reported holdings of the silver ETF, SLV, have also shown a reported increase since the first of this year of some 52 million ounces. If SLV is sourcing silver from the Comex warehouses, the paper silver shorts at the Comex would do well to begin getting nervous.

Call me Silverfinger!

[Mr Pipples]

http://jsmineset.com/index.php/2009/04/08/...-trader-dan-99/

 

Call me Silverfinger!

 

A bit more on all that from lemetropolecafe via GIM here: http://www.goldismoney.info/forums/showpos...postcount=26658

[azazel]

Ive been buying silver coins and bars since 2007. I have paid between £10-£15 an ounce and £300-£430 a kilo. I have seen the spreads vary considerably and changes in the rate of VAT from 9-19% and 17.5 down to 15%. So looking at the spot price over the years does not tell me how much the stuff costs in the real world!

 

So, what are the lowest typical prices you have paid for silver and when? Im talking since 1980. Im particularly interested in knowing how much silver coins were in GBP around 2000 when spot silver was $5 or lower.

[bonobo]

Ive been buying silver coins and bars since 2007. I have paid between £10-£15 an ounce and £300-£430 a kilo. I have seen the spreads vary considerably and changes in the rate of VAT from 9-19% and 17.5 down to 15%. So looking at the spot price over the years does not tell me how much the stuff costs in the real world!

 

So, what are the lowest typical prices you have paid for silver and when? Im talking since 1980. Im particularly interested in knowing how much silver coins were in GBP around 2000 when spot silver was $5 or lower.

 

Here's a few of my purchases:

 

sep 2004 5oz bars: £27.99, £28.50

oct 2004 10oz bar: £51.02

feb 2005 20x1oz bars: £110

Oct 2005 24x1oz bars: £100

mar 2006 1 kilo coin: £225

june 2006 1 kilo ingot: £225

jan 2007 5oz bar: £43.65

jun 2007 10oz bar: £75

 

all from ebay except the 1 kilo coin which was from Weightons. All the rest (a couple more kilos) I've picked up an ounce or two at a time so I've excluded those.

HTH

[azazel]

Here's a few of my purchases:

 

sep 2004 5oz bars: £27.99, £28.50

oct 2004 10oz bar: £51.02

feb 2005 20x1oz bars: £110

Oct 2005 24x1oz bars: £100

mar 2006 1 kilo coin: £225

june 2006 1 kilo ingot: £225

jan 2007 5oz bar: £43.65

jun 2007 10oz bar: £75

 

all from ebay except the 1 kilo coin which was from Weightons. All the rest (a couple more kilos) I've picked up an ounce or two at a time so I've excluded those.

HTH

 

Thanks. Are the prices typical at the time or did you get bargains? Looks like the 24 x ounce bars were a bargain at £100! Are you still buying or sold yet?

 

[Compounded]

I have bought Ag spoons and forks from ebay in the past at about spot and a couple of engraved trophies at below spot but this is a time consuming way to aquire silver.

 

I do however think silver in this form is the least likely to be confiscated.

[lowrentyieldmakessense(honest!)]

I have bought Ag spoons and forks from ebay in the past at about spot and a couple of engraved trophies at below spot but this is a time consuming way to aquire silver.

 

I do however think silver in this form is the least likely to be confiscated.

can they be classified as dangerous weapons

[Compounded]

can they be classified as dangerous weapons

 

There is a truth in that quip that is depressing.

 

However, I do have a friend that uses silver cutlery and it's nice it is a much prettier metal than stainless steel and i am tempted myslef to use some of the spoons and forks I own unfortunately I have a dishwaher and silver is no good in a dishwaher it tarnishes badly.