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 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.
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.
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
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??
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
Been sitting on 6000 oz of silver bought @ $6.30 per oz during 1984. May be my chickens are finally going to hatch.
$6.30 @1984 would be $12.84 today so I think I am finally gaining some ground any way.
the point is it's just a prognosis but how many times did they go wrong so right now it is at a high selling worth why don*t grab the chance and put it in other (safer) investigations?
If you sell your silver now you got these 30$ 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
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.
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