Chart usGOLD   Chart usSILVER  
 
Food for thought
The obvious is always the least understood
Prince Metternich  
Search for :
LATEST NEWS  :
MINING STOCKS  :
Subscribe
Write Us
Add to Google
Search on Ebay :
PRECIOUS METALS (US $)
Gold 1285.362.90
Silver 20.380.00
Platinum 1456.751.00
Palladium 869.750.62
WORLD MARKETS
DOWJONES 16563-306
NASDAQ 4370-93
NIKKEI 15523-98
ASX 5548-76
CAC 40 4200-46
DAX 9219-188
HUI 234-5
XAU 99-2
CURRENCIES (€)
AUS $ 1.4434
CAN $ 1.4653
US $ 1.3391
GBP (£) 0.7957
Sw Fr 1.2162
YEN 137.8610
CURRENCIES ($)
AUS $ 1.0779
CAN $ 1.0943
Euro 0.7468
GBP (£) 0.5942
Sw Fr 0.9082
YEN 102.9530
RATIOS & INDEXES
Gold / Silver63.07
Gold / Oil13.16
Dowjones / Gold12.89
COMMODITIES
Copper 3.230.00
WTI Oil 97.68-0.49
Nat. Gas 3.83-0.02
Market Indices
Metal Prices
RSS
Precious Metals
Graph Generator
Statistics by Country
Statistics by Metals
Advertise on 24hGold
Projects on Google Earth
Silver: Buy, Hold Or Sell? Update #22
Published : November 30th, 2011
608 words - Reading time : 1 - 2 minutes
( 0 vote, 0/5 ) Print article
 
    Comments    
Tweet

 

 

 

 

Your independent Swiss asset manager 

 

THE TIMELESS PRECIOUS METAL FUND

THE TIMELESS ENERGY FUND

THE SIERRA MADRE GOLD AND SILVER VENTURE CAPITAL FUND

 

 

NOVEMBER 30 , 2011

 

 

Silverinstitute



Silver/Ounces in US$

Buy Date

Amount/oz.

Buy Price

Total (USD)

Price Today

Value Today

November 15, 2002

10'000.00

4.54

45'400.00

Total

10'000.00

4.54

45'400.00

32.16

321'600.00

Profit

276’200.00

Profit (in %)

608%

OUR LONG-TERM RECOMMENDATION

BUY

OUR SHORT-TERM RECOMMENDATION

HOLD/BUY

 

 

1980 to 2011: From bear to bull

 

 

 

 


 

 

 

In 1980, the price of one ounce of silver reached $50. Today, the purchasing power of the US dollar is substantially less than in 1980. The price of one ounce of silver would have to rise to $ 135 to reflect the value of the US dollar thirty years ago.

 

The long-term picture of the silver price

 

 

 

 


 

 

 

The bull market of the silver price started towards the end of 2002. On the way from $ 4.02 to the recent high of $ 48.42 (an increase of 1,100%), several significant corrections took place, the most severe one in 2008 when the silver price sank by 56% only to jump 440% to a new high since the bull market started. “The bull market is not over. However, at present, a correction seems to be overdue.”, we wrote in March. It is time to consider re-entering the market (if you have sold).

 

 

 


 

 

 

“Extremes never last but no extreme is an absolute extreme and there is no guarantee that the extreme of 2006 will actually be repeated.”, we wrote in our last report. The 2006 peak was in fact surpassed in March 2011, followed by a sharp correction.

 

 

 

 


 

 

 

In the past, excluding 1980, it would have paid off to play the extremes, always assuming that one can buy back at the right moment which is far from easy. A long-term investor may feel better simply remaining invested as he believes that prices will eventually go much higher.

 

 

The medium-term picture of the silver price

 

 

Critics of technical analysis include well known fundamental analysts. For example, Peter Lynch once commented, "Charts are great for predicting the past." Warren Buffett has said, "I realized technical analysis didn't work when I turned the charts upside down and didn't get a different answer" and "If past history was all there was to the game, the richest people would be librarians."

 

 

 


 

 

 

Fundamental Considerations: THE RISING SILVER DEMAND

 

Silver is unique. Its natural beauty is legendary. Its range of applications is exceptionally broad. As a precious metal, it has been a source of human adornment since the beginning of time. Such as a component of fine tableware, appropriately called silverware. As a light-sensitive element, it has revolutionized preservation of memories in the form of photographic images. More recently, its unique properties comprising of anti-bacterial qualities, corrosion resistance, malleability, ductility, reflectivity and conductivity have opened new possibilities for a myriad of other industrial applications.

 

The demand that pushes the silver price higher

 

 

 

 


 


World Silver Demand in millions of ounces (Source: World Silver Survey 2011)

 

 

Implied Net Investment demand, industrial demand and demand for coins cause the silver price to increase. Without it, the silver price would never have performed as it did. Industrial demand and demand for coins and medals are expected to grow further.

 

 

The Gold / Silver-Ratio

 

 


 

The gold/silver ratio has been steadily declining since its high in 1990 and reached a recent low early of this year when the silver price just about touched $50 an ounce. Since then the ratio has rebounded almost 30 points. This ratio may well move lower as the silver price is poised to recover from its oversold level.

 

 

Silver is again our preferred precious metal!

 

 

 

 

 

Tweet
Rate :Average note :0 (0 vote)View Top rated
Previous article by
Silver
All articles by
Silver
Next article by
Silver
Receive by mail the latest articles by this author  
Latest comment posted for this article
Be the first to comment
Add your comment
TOP ARTICLES
MOST READ
TOP RATED
MOST COMMENTED
Editor's picks
RSS feed24hGold Mobile
Gold Data CenterGold & Silver Converter
Gold coins on eBaySilver coins on eBay
Technical AnalysisFundamental Analysis
Most recent articles by Silver
7/15/2014
8/10/2013
7/31/2013
2/20/2013
1/20/2013
All Articles
Comment this article
You must be logged in to comment an article8000 characters max.
 
Sign in
User : Password : Login
Sign In Forgot password?
 
Receive 24hGold's Daily Market Briefing in your inbox. Go here to subscribe or unsubscribe.
Disclaimer