samedi 14 mai 2011

Silver $ 50 in 2011

    One of the successes most surprising of the past year in the world of investment was the epic boom of the prize money. More than 80% in terms of U.S. dollars in 2010 only, silver is on an absolute tear since the financial crisis of 2008. Due to rapid increases in prices, many analysts are openly wondering if the money trade got too crowded and that the cash price are ready for a serious correction in the near future.
While the advances of the silver are undoubtedly impressive, it still has a long way to go before reach us the territory of the "bubble". There are two main forces fueling the steady rise of the silver: one is purely monetary, while the other is largely industrial. Investors in the country developed as well as the emerging middle class in countries such as the India and China are sinking in the money in large part to inflation. Despite guarantees to the contrary effect, the central banks of the world are engaged in a competitive devaluation of their own respective currencies. In the race to the bottom, everybody is the loser. Prudent savers around hard world want money, fiat step promises. This is why millions have decided to purchase money.
More important still, industrial demand for silver bullion continues to grow beyond the current mine production. As the element with the highest available electrical conductivity, silver is found in almost every imaginable electronic device on the market. Every cell phone, the motherboard and CPU manufactured today contains silver, and the vast majority of it will end up in a landfill site. In this sense, money is a non-renewable resource that is rapidly being depleted. When the supply crunch hits the money market in the near future, you can expect the price to the silver arrow.
The last piece of the puzzle is murky global. If you've been paying attention to the news lately, you know that the Middle East is elevated. The rest of the developing world is not better off than the Arab countries in terms of stability. In the light of all this turmoil, investors are seeking real assets. This time, they turn US Treasury bonds. This is why it is imperative to buy silver now while it's still a decent bargain. In 1980, the prize money peaked at US $50 per ounce, on the much weaker fundamentals. Corrected for inflation, that the price would be about $170 today. While investing in the silver mines of stocks and ETFs are all well and good, nothing beats the real thing to own.

Aucun commentaire:

Enregistrer un commentaire