Silver Prices About to Soar?

Now that Ben Bernanke and the Federal Reserve have put into play another round of quantitative easing, the price of silver will, without a doubt, continue to soar in price.

Along with gold, it's very probable that prices of silver will rise for a long time to come, as the implementation of a seemingly endless injection of money into the American economy has been unleashed, and that will push down the price of the U.S. dollar, generate inflation, and cause people to seek safety for their money.

The Fed will acquire $40 billion in mortgage-backed securities until it sees the jobs market reach sustainable levels. That almost assuredly take years based upon the lack of impact QE1 and QE2 had on the economy and jobs market.

That means silver and gold prices should enjoy a long ride.

Also helping the two precious metals along is the extension of low interest rates, which are now expected to be in place until mid-2015.

Again, this should result in a long, upward climb in gold and silver prices during that period, assuming the Fed continues to buy up securities as they have pledged to.

It's definitely time to get into silver.

Silver, Gold Jump After Big Selloff

A day after silver and gold were hammered, the two precious metals rebounded after investors took advantage to get in at a good price.
Silver and gold prices have been soaring, and were due for a correction.

Silver for May delivery climbed $1.02, or 2.9 percent, to $35.66 an ounce. Gold for April delivery rose $10.90, or 0.6 percent, to end the session at $1,722,20 an ounce on the Comex division of the New York Mercantile Exchange.

Neither the long-term outlook for silver or gold has changed, and the upward price momentum, over time, will continue.

Other metals were also up today, including May copper, which was up 5 cents, or 1.4 percent, to $3.92 a pound.

April platinum rose $8.50, or 0.5 percent, to $1,701.10 an ounce. Palladium for June delivery jumped $8.35, or 1.2 percent, to $715 an ounce.

Silver Wheaton closed at $38.80, gaining $0.43, or 1.12 percent. First Majestic Silver closed at $20.80, jumping $0.34, or 1.66 percent. Silvercorp Metals closed at $7.36, up $0.01, or 0.14 percent.

Silver Still Moving with Gold

Silver Futures Move in Sync with Gold

Although silver has a strong industrial base and demand in its own regard, investors at this time are considering it a haven of safety similar to gold, and consequently what is happening with gold is what is happening with silver, as far as price movements go.

Again, what that tells us is silver isn't being acquired for its industrial demand and use, but rather for its resistance to tough economic conditions and uncertainty in a similar way gold is.

Until that changes, we'll probably see the two move together as they have so many times in the past.

Silver Futures Move in Sync with Gold

Silver: Prices Ready to Breakout?

The place to put our money in 2009 will probably be in silver, gold and oil. I don't see any of them disappointing over the year. Already oil has a super contango going, with guaranteed profits built in with little or no risk.

Silver and gold are almost ensured the same thing, as the US dollar starts its inevitable collapse and decline, and investors rush to safety in the two metals.

Silver and gold futures, along with ETFs should also perform strongly, as the deleveraging and forced liquidation periods of investment funds and companies seems to be winding down. That's why we see money flowing to this precious metals.

It's also the reason the dollar will continue to drop for some time, as the artificial circumstances that allowed it to remain temporarily strong are now gone with the forced liquidation and deleveraging period, and so nothing stands in the way of silver futures and gold futures moving up in price.

Another reason 2009 looks good, is energy costs are down, which play a big part in the cost of mining silver, which with the timing of the economic conditions, is nothing but favorable for silver in 2009.

While there's no doubt that gold futures and prices will flourish in 2009, reaching heady numbers, in terms percentages percentages, silver futures will probably even outproduce gold futures as an investment, and bring some very good returns themselves.

One thing to consider with the pricing of silver is there are two components involved, just like their is with platinum, as they're both significant industrial metals as well as investment metals.

That means much may depend on how investors view silver as to how high it will go. If they look at it strictly from an industrial demand point of view, it may not rise as high as expected, because demand for industrial silver could definitely fall this year.

But view it primarily from as an investment metal, and silver will shine in 2009, as silver futures soar to dizzying heights.

One last thing about silver futures prices soaring this year, is they're denominated in U.S. dollars, while most silver mining companies are foreign, and not working from the dollar. That means that locally, prices are falling while the metal prices are soaring. What could be better than that for silver investors everywhere?

Well, those in America have the pesky problem of a currency falling in value, so exchange rates could hurt them depending on how things are structured and the silver company they've invested in, if that's how they went about doing it.

Either way, silver futures and investment in some silver mining companies and ETFs, should be one of the few solid investments available to those looking to not only salvage their money, but have it work for them too.

A few commodities will be hot this year, and silver will be one of them.

Jim Rogers Prefers Silver over Gold This Year

With large funds, central banks and the IMF looking to sell gold to raise cash, along with the way silver has plunged, Jim Rogers says he thinks if he was forced to choose between the two, silver will probably outperform gold this year.

“Silver will do better than gold,” Rogers, chairman of Singapore-based Rogers Holdings, said on Monday in an interview. “It’s been beaten down horribly. If you put a gun to my head and said you have to buy one, I would buy silver rather than gold.”

Assuming member countries of the IMF will vote to sell the 403.3 metric tons of gold they agreed upon in May, that could definitely drive the price of gold down even further, which would be a good time to get back into it.

Even though Rogers thinks silver will be better than gold, he added he will get back into gold if downward pressure on price continues.

Silver Drops as Investors Sell Precious Metals to Raise Cash

Investors desperate to get their hands on cash have been selling precious metals in order to gain some liguidity.

As a result, December silver fell by 10.6 percent, losing $1.275 to settle at $10.60 an ounce on the Nymex. It dropped even further in after hours trading.

Gold also plunged, settling at $859 on the Comex division of the NYMEX, as insitutional investors were looking for cash there as well.

Copper also fell significantly as it dropped 10.87 percent, 26.15 cents, to $2.1445 a pound.