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Silver
Why Silver Prices are Rising We like gold. But we love silver. Gold is historically the most sought-after precious metal. But there's a reason why men like George Soros, Warren Buffett, and Bill Gates are heavily invested in its less glamorous cousin, silver. Silver is a contrarian play, and it's been blowing gold out of the water. We expect that trend to continue for a number of reasons; including historic ratios and long-term trends we follow. Our in-depth analysis points to far higher prices. $100 certainly isn't out of the question. Silver today is more than just a way to preserve wealth. It's an investment with solid fundamentals. Last year, industrial demand for silver jumped 7.2% to a record of 455.3 million ounces, as a result of its increased uses in batteries, superconductors and other electronic components 160% of gold mine supply is purchased by investors each year or about 4000 tonnes of gold. In stark contrast, about .07% of silver mine supply is purchased by investors each year, about 1555 tonnes. Over 100 times more is spent on gold, than silver, by investors each year, and yet, the fundamentals are so much better for silver, precisely due to that lower investor demand. When investors get educated about silver, they buy hand over fist, and create shortages at major coin shops around the world. Basically, the main reasons behind the increase are the global economic recovery and the industrialization and emergence of countries including China, Brazil and India. What was not expected however was the rate of price increase, rising much more sharply than was widely anticipated. The price of silver is widely expected to rise by almost 50 percent in 2011. Over the next ten years or more, silver prices are predicted to remain high. This is mostly due to increasing demand from countries undergoing intensive levels of urbanization and infrastructure building. In particular China and India will drive the cost of metals across the board up. Silver stocks, it is widely predicted by metal and silver markets analysts, will go higher through 2011 and 2012, with prices increasing at a much sharper rate than was previously thought. *Past performance, future projections and past mining operation life expectancies are not a guarantee of future results. All rates of return and past results provided herein are for historical comparison purposes only. Investments involve financial risk of loss and may not be suitable for all investors. |
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