Silver hits 30-year high

Gold's cheaper cousin reaches $30 an ounce on eurozone debt concerns and talk of further monetary easing in the US.

By TheStreet Staff Dec 6, 2010 3:47PM

thestreetMining metal © CorbisBy Andrea Tse, TheStreet

 

Silver prices reached a 30-year high as ongoing European debt-contagion fears and Federal Reserve Chairman Ben Bernanke's talk about a possible third round of quantitative easing in the U.S. brought out the sparkle in gold's cheaper alternative.

 

Silver for March delivery topped $30 in midday trading and settled up 46 cents at $29.74 as investors sought the inflation protection attributes of gold's "poorer cousin" and security from economic uncertainties. Speculators took advantage of the spike.

 

In an interview over the weekend, Bernanke signaled that the central bank could expand its $600 billion Treasury-purchase program to address the high unemployment rate, fueling inflation sentiment.

 

Spot silver prices were leading the precious-metals complex during midday trading, rising more than 1%, according to Kitco's spot price index.

BullionVault's head of research Adrian Ash recently said that "silver's popularity is clearly spreading." BullionVault began offering silver bullion to its users in January and has seen new inquiries for silver rise by more than a fifth in one recent month. For the full year, online gold and silver trading at BullionVault grew nearly 29% by volume to $1.33 billion.

 

Shares of the iShares Silver Trust (SLV) were up 2.4% to $29.27 in afternoon trading. Silver Standard Resources (SSRI) was rallying 3.9% to $29.09, and Coeur d'Alene Mines (CDE) was jumping 4% to $26.92.


Silvercorp Metals (SVM), meanwhile, was dropping 4.1% to $13.03 after the company announced it has agreed to sell 8 million common shares at $12.70 each to a syndicate of underwriters, led by CIBC and BMO Capital Markets, for aggregate gross proceeds of about $101.6 million.

 

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17Comments
Apr 18, 2011 11:33PM
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Selling half. AG must be near or at the top.
Feb 24, 2011 7:37PM
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Have been collecting proof silver eagles since their inception. dont know what to do with them. Whata ya'll think?
Feb 11, 2011 7:55PM
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With Silver @ a 30 year high & the money printing presses running 24/7 the Dollar will continue to fall in value while precious metals will soar,Common Sense. Why is China & India buying all the Gold & Silver ? They know that the American Dollar will fail as the Worlds reserve Currency & Thus be practically Worthless if not Completely Worthless.Gold,Silver & other precious Metals have been a form of Currency From the Early beginnings of civilization & Will be till the End .Keep Gold ,Silver & other centuries proven methods of Currency.Common sense101!!!!!!!!!
Dec 7, 2010 11:44AM
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Silver is backed by silver, gold by gold, stocks by the company...  The dollar is backed by a printing press...  Which would you rather hold?
Dec 7, 2010 10:52AM
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Fittgen,

The bigger banks do not hold silver they are holding short positions that are backed up only by a tiny fraction of the actual metal. There are currently a number of lawsuits pending to force the banks to purchase enough of the metal to cover their positions.  Again this is bullish for silver.

 

Your thoughts are based on a "flight to safety". The declining value of paper money is certain. So you would trade a position that might or might not lose (during an upward trend for that asset with good fundamentals in place) for one that will certainly lose? Go and be a loser if you want to I can't decide for you.

Dec 7, 2010 9:22AM
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buzz in the bunker

If you sell your silver now you got these 30$ per ounce safe .

Think like this if 1 bigger bank makes an fail investigation the price will probably go down and what you want to do than? you will sit on your silver with just a small + in what you invested or even drop down on lower prices.

So this is just my thoughts don't blame me for it

Dec 7, 2010 8:38AM
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Fittgen,

What's safer?

 

The conditions that have driven hard asset prices still remain. If anything they've gotten worse as all the central banks are still on something of a printing binge.

 

The Fed hasn't reached it's target inflation rate yet. The time to sell hard assets is not while the trend is up and central banks are trying to drive inflation higher. The time to sell is when (after realizing they've let the inflation genie too far out of the bottle) the fed tightens to curb inflation. Until that happens, stay with the silver 

Dec 7, 2010 8:25AM
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"poorer cousin", for me silver is a more value added investment position over gold, but I fear that it can be almost (not quite) as volatile as a woman scorn when one takes into account what affects its value from a broader market view. Buy with caution, the big boys can break your back at any moment.
Dec 7, 2010 6:23AM
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buzz in the bunker

the point is it's just a prognosis but how many times did they go wrong so right now it is at a high selling worth why don*t grab the chance and put it in other (safer) investigations?

Dec 7, 2010 1:38AM
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here's a bigger story:

count down with Keith olberman just has an expose on the feds and whom has been buying bond's IRAN, UAE, CHINA and so on and so forth; it's all done secretly only fed's know the true worth of the debt owned by countries who hate the USA.....what gets me is is that keith has changed his tune or msnbc has....what have they been smoking, is my question??

Dec 7, 2010 12:36AM
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Why do they say "golds cheaper cousin". Silver is a commodity. We don't ever hear "oils cheaper cousin, gasoline." They really don't understand the market, do they? LOL
Dec 7, 2010 12:06AM
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Yeah, the hardest part of owning Silver or other precious metals is knowing when to sell. I always told myself prices will shoot up, but only after I sell. No matter when I sell.Smile
Dec 6, 2010 11:59PM
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Been sitting on 6000 oz of silver bought @ $6.30 per oz during 1984. May be my chickens are finally going to hatch.Smile 

$6.30 @1984 would be $12.84 today so I think I am finally gaining some ground any way.

Dec 6, 2010 10:11PM
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Own 4 cash for precious metal retail outlets. Our business is booming with over $500,000 in purchased gold, silver and platinum over the last 4 weeks! Not holding any and just melting it and locking it in. I figure its just like the stock market and will use dollar cost average? Hope I am doing the right thing
Dec 6, 2010 9:46PM
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Tim-K

Let me see.... you're going to cash right when there's talk of further increases in the money suppy which was just doubled.... sounds pretty dumb to me 

Dec 6, 2010 6:14PM
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I'm locking in some profits on silver ingots I have purchased years ago @ $4-$5 per ounce. If it goes and stays over $30.00 , I will......................Sell ...Sell... Sell more and more.. DO not wait 50.00 you will get burned.

Dec 6, 2010 6:11PM
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The extraordinary high costs of silver and gold has been a neverending headache for us silversmiths, and jewelers, for now, we have to price our jewelry inventory really high.  It's also a major headache for jewelry students as they struggle to afford silver while learning to work with it.   If silver prices keep going up, it may become completely unaffordable to work with.  I've had to give up working with gold, unless it's a commission, for it's just too costly to maintain gold inventory.  Platinum, won't even touch it unless a client really wants a platinum ring.
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