There are rumours these past few days, partly thanks to Jason Hommels Silver Stock Report, of a silver shortage in the USA and Canada. Interestingly, for all the conspiracy theorists out there, Silver has dropped approx 10% these past few days alone. Now, if that doesn't fit the description of a conspiracy theory, what does? Desperate short-sellers trying to flush out a few naive sellers?
No such problems in Europe, where the mainstream are not at all onto this story thanks to a strong Euro and the disappointing rule where VAT of between 15-25% is added to the price of Silver bullion. They may regret missing their chance though, and there are in fact many ways to buy silver and avoid paying the VAT even in if you live in the EU.
You can find out what they are in the new book on How to Invest in Gold and Silver. It will repay its purchase price many times over.
Showing posts with label silver boom. Show all posts
Showing posts with label silver boom. Show all posts
Friday, 21 March 2008
Saturday, 15 March 2008
Why Silver is on the up too
Gold is a purer representative of true wealth than silver. Although both metals have been heavily used throughout history as currency and to represent wealth, Gold has few uses apart from as money, whereas Silver is a heavily used industrial commodity and that can affect its price and desirability outside of any investment considerations. For example, some commentators are convinced that the rise of digital photography and the resultant downturn in traditional photography will result in a massive decrease in demand for silver, affecting the price as a result. This may or may not turn out to be true.
As a much used industrial commodity, it is in the best interests of many to keep the price as low as possible for as long as possible. It is thought by many commentators that the price has been manipulated for many years to be artificially low, and is in no way representative of how much Silver exists in physical form. For example, on COMEX, the main New York USA exchange for trading silver, there may be more short sales than there is silver to back them up. If this is true, then imagine what would happen if those sellers were all forced to buy silver on the open market to meet their promises? And more importantly, would they even be able to? In the USA, there is even a Silver Users Association, representing the viewpoint of businesses that consume silver, and lobbying government when necessary to protect those interests. They successfully managed to delay, but not stop, the introduction of the first ever Silver investment fund, the Barclays iShares Silver ETF in 2006 (for an explanation of ETFs, see the Exchange-Traded Funds chapter).
You can read more about this, and other gold and silver government conspiracies, in the new book on How to Invest in Gold and Silver. It will repay its purchase price many times over.
As a much used industrial commodity, it is in the best interests of many to keep the price as low as possible for as long as possible. It is thought by many commentators that the price has been manipulated for many years to be artificially low, and is in no way representative of how much Silver exists in physical form. For example, on COMEX, the main New York USA exchange for trading silver, there may be more short sales than there is silver to back them up. If this is true, then imagine what would happen if those sellers were all forced to buy silver on the open market to meet their promises? And more importantly, would they even be able to? In the USA, there is even a Silver Users Association, representing the viewpoint of businesses that consume silver, and lobbying government when necessary to protect those interests. They successfully managed to delay, but not stop, the introduction of the first ever Silver investment fund, the Barclays iShares Silver ETF in 2006 (for an explanation of ETFs, see the Exchange-Traded Funds chapter).
You can read more about this, and other gold and silver government conspiracies, in the new book on How to Invest in Gold and Silver. It will repay its purchase price many times over.
Sunday, 24 February 2008
Let Gold Speak up Itself
Lately, I haven't been posting anything to this blog, and the answer is simply that it has been a time to let Gold and Silver do the talking. It has been a fairly meteoric rise these past 2 months for the twin precious metals to bring them within sight of the landmark $1,000 gold level never before attained.
Even though it's nice to see the 1980 high of $850 well and truly passed, my concern now is that every expert and his dog has been forecasting $1,000 gold in 2008, and with a general concensus of opinion like that then the inclination must be to consider calling it the other way now. Not that I'm selling, as longer term the fundamentals of currency devaluation and inflation in the coming years are still in place. Even though I'm too young to remember it, 1975-76 saw gold half in price from $200 to $100 and I can't help but feel something similar may be on the cards here.
Even though I am waiting for the big stock market crash, I also think the US and UK are about to wrench one more boom out of the economy with their dropping of interest rates against whatever the massaged, official inflation figures saw. My prediction is 2010, a big crash and gold flying.
But in the absence of a crystal ball, genie or magic fairy, I'll stick with what I know and hold the gold and silver I've already got and leave it at that for the time being.
Even though it's nice to see the 1980 high of $850 well and truly passed, my concern now is that every expert and his dog has been forecasting $1,000 gold in 2008, and with a general concensus of opinion like that then the inclination must be to consider calling it the other way now. Not that I'm selling, as longer term the fundamentals of currency devaluation and inflation in the coming years are still in place. Even though I'm too young to remember it, 1975-76 saw gold half in price from $200 to $100 and I can't help but feel something similar may be on the cards here.
Even though I am waiting for the big stock market crash, I also think the US and UK are about to wrench one more boom out of the economy with their dropping of interest rates against whatever the massaged, official inflation figures saw. My prediction is 2010, a big crash and gold flying.
But in the absence of a crystal ball, genie or magic fairy, I'll stick with what I know and hold the gold and silver I've already got and leave it at that for the time being.
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