Silver’s Up 675% Since 2001; Here’s Why It Will Go Higher

Image

 

As I have written in these pages before, I expect silver prices to outperform gold prices in the years ahead. That opinion hasn’t changed.

As gold prices started their flight upwards back in 2002, silver prices followed a similar pattern. Below is a price chart of monthly silver prices since 2001—when gold was trading just below $300.00 an ounce.

$SILVER Silver-Spot Price stock market chart

Chart courtesy of http://www.StockCharts.com

Silver prices traded as low as $4.00 an ounce in late 2001 and climbed to highs of almost $50.00 an ounce in 2011. While silver prices have retraced a bit, the metal is still up more than 675% from its lows in 2001. Meanwhile, gold prices have risen by about 466%; from $300.00 to around $1,700 an ounce today.

I see a future where silver will become the focus of investors, while gold will be bought by the central banks. We are starting to see that happen at accelerated pace now. You have read extensive articles inProfit Confidential documenting the gold buying of many central banks. And investors are already rushing to buy silver.

To give you some perspective, the U.S. Mint has halted its sales of 2013 American Eagle silver coins, because it ran out of them. Yes, the U.S. Mint ran out of 2013 silver coins! Sales for 2013 silver Eagle coins surpassed five million ounces. (Source: Reuters, January 17, 2013.)

In addition, investors are turning to alternative ways of buying silver. The biggest Exchange Traded Fund (ETF), called the iShares Silver Trust (NYSE/SLV), saw its holdings of silver rise to the highest level in five years. The fund has purchased $579 million worth of silver to bring its total holdings to 10,735 tons.

According to data collected by Bloomberg and Barclays plc, the demand for silver investments is 19,114 tons through exchange-traded funds globally, which equates to about nine months of supply from mines.

This sudden investor interest in silver shouldn’t be surprising to my readers. As central banks print more fiat currency, accordingly, silver and gold prices will rise.

With the economies of many countries suffering, money printing will be the “savior” of choice for central banks, and because of that, I expect to see silver prices increase significantly over the next couple of years.

By  for Profit Confidential

http://www.MissionMining.com 

Advertisements

About Mission Mining

US Gold and Silver Mining - Our Nevada & California mining properties are anticipated to hold extremely large precious metals resources. The Company has posted over $400 Million in Assets in its OTC Filings. Come join us!
This entry was posted in Uncategorized and tagged , , , , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s