SILVER - not many people take this grey metal seriously ........ but if the conditions truly favour accumulation of Gold ( and an extension of the currentl bull market) then spare a thought for SILVER.
It doesn't have the same vociferous fan club that Gold has but if the bull market in precious continues then Silver should "out perform" it's more expensive cousin.
I'm no expert but I remember in late summer 05 with Silver under $8 (around $7.80) I reckoned it could go to $10.- over 25% move at the time ... In Autumn 05 Gold broke out at $440-450 and the rest is history.
At Silver $10 ... I thought why not $15 (based on
www.mrci.com/pdf/si.pdf) which said above $10 ... then $15 might be next hurdle............ as flippant as it sounded at the time that was +50%!
We got to $15 early in first half of 2006..... I think.......... almost double the price of summer 05!!!!
Silver is the high beta play .............. sort of the Naz to Gold's S&p500....
I believe next Silver milestone is $20 ..... for all the reasons you will see all over the Net (and also T2W)
Again this represents almost +50% from current prices........
Bottom Line
I believe Silver is gonna be Big ... if gold continues to fly...
Coins, Cutlery, Jewelery and general silverware will benefit.......... it may become like the art market ............... "SILLY"! Regardless I think Silver stuff is worth considering as an investment... Smarties are already onto it quietly accumulating............. but remember the ordinary Jo(e) doesn't know yet and when they find out he/she will be all over it ...... and prices will go northwards.
I have to be honest....... I have blocks of silver bought at much lower prices - courtesy of talking heads on Bloomberg and CNBC many years ago....Thank Goodness !
But if you believe the macro story of worthless dollars increasingly printed to order.... to keep the Titanic afloat then precious and Silver still has a place in the portfolio.... Moreover, as the Hunt Brothers knew way back when Silver is a small market and it wouldn't take much for someone to attempt to
corner the market and drive prices into the stratosphere............
It may not happen but it is a clear and ever present "danger" ! On the basis of "if it can happen then it probably will" ..... Don't rule out an attempt to corner the silver market this time around.
Silver stocks I here some of you cry.... aren't these a leveraged play on the grey metal ?
Well yes.... but the LatAm leaders who control a fair bit of silver seem keen to Nationalise mining/resource companies.... this may hurt the overseas companies earnings and therefore share prices..........but may elevate the resource prices through reduction in production/limited suppy .......... perhaps!
Good for Silver........ but perhaps less good for the stocks!
Whilst Gold is on the "A" list ................ Silver delivers.....
Still working at my poetry/rhyming slang... Sorry !
