Commodity Trade Mantra

market insights

Value Of Silver Will Surge Compared To Gold In The Future

Silver is certainly the more undervalued precious metal asset & will likely make one of the best investment strategies of a lifetime. While some readers may say that this is just more hype, the fundamentals provide us a pretty clear picture. That is, if we are able to understand the entire system and how things are likely to unfold. Here are some important factors to consider.

Currency Devaluation is no Accident, Save in Real Money: Gold and Silver

People should be encouraged to save in real money. Devaluation of “fiat money” is no accident. While the Federal Reserve Note “dollar” has lost more than 97% of its purchasing power since the Federal Reserve System was created in 1913, gold and silver is a much better store of value, having risen 60 and 20-fold, respectively, in their dollar-denominated price.

Will the Dip in Silver Prices Attract Buyers to Silver Eagles Again?

Silver prices started a rapid spike higher in late June, taking it to $20.57 a troy ounce in July. At the same time, sales of silver American Eagles took a tumble. The price of silver bullion has been working its way down in recent days. Lower silver prices are attractive to long-term silver investors. Present silver prices might seem to be a last-chance kind of bargain.

Silver Prices Expected to Slide Further - But Won't Stay There for Long

Silver could be setting up for another near-term slip prior to resuming its long-term bullish trend as this week progresses. In the absence of any significant shortcomings in the US data, silver prices should have some substantial downside potential in the coming weeks. The long-term bias remains bullish so don’t expect to see the metal stray far below the 17.849 mark.

AD
Are Gold and Silver still Trending up or Vulnerable to some Profit-Taking Yet?

Before you rush to buy into gold-backed ETFs, it’s wise to note that there are signs of profit-taking in gold. Gold and silver tend to move together. Investors monitor the gold-to-silver ratio to assess how expensive or cheap silver is, relative to gold, currently seen at around 70 – near the upper end of the range between 45 and 80. This tells us that silver is still cheap compared to gold.

Silver Prices Supported by Lack of Follow-Through Selling

After coming under pressure on Friday and dipping to 8-week lows, silver prices gained some respite on Monday with a retreat in US bond yields helping to cushion the risk of further short-term selling. Latest COT data recorded a further decline in long non-commercial silver positions to over 82,000 contracts from 85,000 the previous week & the lowest reading since June.

Gold and Silver: The Precious Metals Sector and the Federal Reserve

There has been no major correction in the gold and silver market all this year, which is inflated after months of rallying, and we will look at some evidence here that the correction may have considerably further to go, in points terms if not in time terms. If the dollar rallies, gold could get whacked, but would be expected to be followed by a reversal & thus present a MAJOR buying opportunity.

Double Digit Inflation And The Rise of Gold

Inflation can really spin out of control very quickly. So is double-digit inflation rate within the next five years in the future? It’s possible. We would see a struggle from two to three, and then jump to six, and then jump to nine or ten. This is another reason why having a gold allocation now is of value. Because if and when these types of development begin happening, gold will be inaccessible.

more from market insights

follow us

markets snapshot


Market Quotes are powered by Investing.com India

live commodity prices


Commodities are powered by Investing.com India

our latest tweets

follow us on facebook

editor´s picks

Markets Today

news & commentary from the web

videos


  • Jim Rickards: “There Will Be A War On Gold”


  • Gold & Resources to Rally BIG Says 30 Year Mining Expert


  • HAVE THE MARKETS BECOME TOO BIG TO FAIL?


  • Leading Silver Investment Expert on the Endgame Scenario, Fiat Crash