silver price

Silver And Gold Prices Per Ounce: What Goes Up Needs To Come Down

It happens to be currently really critical for investors to think about buying each silver and gold. In September 2010, gold climbed to some record $1,296 spot selling price per ounce. Silver also continued its steady gain, reaching $21 per ounce. An economic investment source, Arabian Income, predicts gold to gradually rise in worth to $5,000 within another three years. Considering that with the historic 15:1 ratio of your average cost of gold on the average price of silver, the gradual increase in gold worth may also result in an increase in the silver and gold prices per ounce from $21 per ounce to $315 per ounce in three many years.

Gold and Silver Versus Paper Currency

Gold and silver have grown to be good investments for the reason that of a continually weak economic sector and government action. The united states dollar’s decreased value when compared to Euro and concerns of excessive printing by governments has forced a large number of investors to make investments in commodities that have a proven ability to retain value. Due to the fact August 2001, gold has risen in value by $900 per ounce and silver by $14.50 per ounce. Gold is expected to pass $1,600 per ounce by the end of 2011 and silver will continue to shadow its rise in price during a period where slumping global currencies have made buying gold and silver a good quality investment. By investing in gold and silver relatively than paper currency, you’ll be able to expect to see a larger ROI in many years in the foreseeable future.

Factors that Influence Neglect the in Gold and Silver

As a way to maximize the return on your investment in silver and gold, you’ll have to have to understand all in the factors that could possibly affect the worth within your investment. These factors include the daily market spot price tag, the type of coin or bar you’re purchasing, and external economic data.

The daily marketplace spot silver and gold prices per ounce changes each day in accordance with demand and supply. For example, when the supplies of gold or silver were to rise in one day for the reason that demand decreased, the daily current market spot price tag would decrease. The daily sector spot price would possibly also fluctuate depending around the location of this commodity exchange you show up at. For instance, the spot expense inside US will probably vary from your spot expense in Japan.

The kind of coin or bar that you simply invest in will also have an effect around the price you pay when you make your purchase. This is because government fees usually cause the value of bullion coins and bars to end up being above the spot expense. Certified exceptional coins are also a great deal more treasured than the spot cost would indicate, owing to their rarity. For example, the price of evidence American Buffalo cash is currently $1,500 that could be 4-5% above the spot value of gold.

External economic data may also have a significant influence around the price ranges of silver and gold. Generally, the spot price of gold and silver such as gold and silver will increase during an economic downturn. The main reason being, as stock and bond investments dwindle appealing, investing silver and gold prices per ounce becomes significantly more appealing. As significantly more persons commit in important metals, the demands (and their selling prices) increase. It really is advisable to carefully watch external economic data for example stock indexes and also the Dollar Index to become in the position to plan the most effective time to make investments.

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Silver: From $30/oz to over $500 by 2020

Here’s a super bullish article from silver expert Jason Hommel:

Silver: From $30/oz to over $500 by 2020
(And from $500 to $5000 by 2030!)
Silver Stock Report
by Jason Hommel, January 12th, 2011

Silver: From $30/oz. to over $500 by 2020. In under a minute, I can tell you why that price must happen, and likely when. It seems to me that the public will one day wake up and start buying silver to protect from inflation. Thus, long before, say 10-20% of people buy silver, at least 1% of the American public will buy silver. We can calculate what might happen to the silver price when that happens.

The amount of money in US Banks is about $18 trillion. 1% of that is $180 billion.

Very little silver is left; it’s mostly all been consumed, so most of what is available to buy is the annual new mine supply which is 700 million ounces.

$180 billion is $180,000 million. Divide that by 700 million, and we get an implied price of $257 per ounce. Do the math yourself. I’ll wait.

But that price would mean that there is no newly mined silver left over for any industrial use, and that nobody else outside of the USA could buy any of the world’s newly mined silver. Clearly that can’t happen; those two groups would continue to buy silver, competing to buy, and driving up the price even more.

Thus, silver is very likely to be about $500/oz., by about the time that 1% of the American public wakes up and starts to buy silver. That will be the very beginning of the bull market in silver, when measured by “popular demand” — and at that price, silver would still be very unpopular.

Just remember these key facts, and don’t let anyone, or even yourself, trick you out of this developing bull market in silver. Don’t try to time the peaks, don’t wait for dips, just buy and hold real silver, not any kind of paper silver promise.

What kind of annual gains will that be? Let’s see, if silver goes from $30 to $500 in ten years, the compound interest rate calculator tells us that will be an average annual gain of 32.49%, which is about the same as what silver has done in the last seven years, from $4.15 to $30, which is a gain of about 32.66% per year, on average.

Oh, by the way, the 1980 high for silver was $50/oz. That was when M3, money in the banks, was about $1.8 trillion. Today, the monetary base has increased about ten times higher. Thus, the true inflation adjusted peak for silver would be $500/oz. That just further confirms this $500 estimate.

But there are many reasons why silver should surpass the former highs.

Key reasons to surpass the former 1980’s peak:

  1. Silver is more scarce due to 30 more years of industrial consumption.
  2. Paper silver scams are more abundant.
  3. Baby Boomers will be retiring, cashing out stocks and draining pension plans that have not yet invested into silver, causing other investments to vastly under perform silver, making silver ever more attractive.
  4. More trend investors today will notice the silver bull market and continued gains in the silver price, and invest in it, and carry it to further highs.
  5. The US government and political leaders are spending like never before, and the people, even the world over, lack the political will to control government spending which will ruin all currencies.
  6. There are no “safe” currencies to run to, leaving gold and silver as the only alternatives; and gold and silver have been in bull markets in all major currencies for 10 years now.

I’m sure you can think of many other reasons, but that’s enough for now.

So, the true skeptic may ask, “Yes, but this guy is a coin dealer, he’s just pushing his product because he has plenty of silver he wants to dump. Besides, what kind of argument will he come up with to sell silver after it hits $500/oz.?”

Let me answer this two part question. Yes, I do have silver! I have it, because I believe that the price will go up a lot, thus, it makes perfect sense for me to carry it as inventory. I sell it, because few people are able to buy it in bulk like we can, so I use my own stash, and industry connections, to enable others to buy it.

But what will I say after silver hits $500/oz., or nears that price?

I’ll say, “Obviously this bull market in silver is just getting started. Only 1% of American public money is buying silver per year. Just wait until at least 10% of US money is buying silver in a year, the price will be well over $2500 to $5000 per oz. for silver.”

But I would never make that argument now. Too few people would believe me, and they would think I’m some kind of kook. And people never do business with kooks.

And what will I say when silver nears $2000/oz.?

I’ll say, “Everyone knows it only costs 4 cents to print up a $100 bill, and everything returns to its intrinsic value. But used paper, particularly smelly paper, is worth even less, which is useful only for things like lining the bottom of the cages of birds, or burning in the fireplace. Thus, the price for silver will soon only be quoted in terms of gold, and certainly not quoted in terms of any kind of paper money at all.” But again, I’d never say that today, everyone would think I’m crazy.

Oops. Too late for me. But it’s not too late for you to buy some silver!

I strongly advise you to take possession of real gold and silver, at anywhere near today’s prices, while you still can. The fundamentals indicate rising prices for decades to come, and a major price spike can happen at any time.

Gold Leaps to New High

Gold prices shot to their highest level in history today touching a high of $1,297.40.

As you may well be aware of, the gold prices that you are quoted is heavily dependent on the fluctuations in the demand for this precious commodity and the future seems rosy because there are increasing numbers of people investing their money into buying gold. The reason why you should also consider putting your money into buying gold is that it becomes an asset that is solid, and which has bright chances of appreciating which will make your money grow for you.

Effect Of Weakened Dollar

What’s more, things are even more interesting with the gold prices as the relative weakness of the US dollar has impacted these prices. That means that investors are turning to buying gold in order to offset the weakened dollar’s impact on gold prices which has only pushed these prices northwards.

The U.S. dollar has been hit hard by Tuesday’s Federal Open Market Committee meeting statement from the Federal Reserve. While the Fed did not specifically detail quantitative easing measures, most analysts said the statement strongly suggests such due to the very accommodative stance of the Fed, amid a still-anemic U.S. economy. Fresh quantitative stimulus from the Fed, which basically means increasing the U.S. money supply by buying of U.S. securities by the Fed, is significantly dollar-bearish.

And, given that oil prices too are heading north, the fear that inflation will also show no signs of abating which will have the effect of eroding the value of your money; it means that buying gold is a good safeguard for the future.

As we’ve seen in recent weeks, gold prices have been soaring, and with the ever looming threat of a currency crisis, investors are finding it expedient to put their money into assets such as gold that are solid and good value for the future as well. A reason for such thinking is that gold prices will ride over any turmoil in the US economy which may come about as a result of a war in Iran which could otherwise bring stock and property prices crashing down.

Silver prices also hit another fresh 30-month high of $21.26 an ounce. The sinking U.S. dollar and the record-high gold prices have boosted silver. Prices are still in a steep four-week-old uptrend on the daily bar chart and there are still no early technical clues to suggest a market top is close at hand.

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