Category: Metals Commodities Silver Gold

Silver Prices to Soar in 2011 Says Investment Guru

Repost courtesy of Kitcosilver.com

Last year in January 2010 I wrote about the coming surge in the price of silver. People who bought in January 2010 have now doubled their money. The stunning news is that silver’s climb is not over. Buying at $33 per ounce may not be for the faint of heart, but with the outlook strong that silver will climb as high as $100 per ounce in the next 48 months, it’s an investment still worth serious consideration.

Chase Kyla Hunter 2.23.2011

Silver to Soar in 2011, Says Investment Guru
By Marc Davis     Printer Friendly Version Bookmark and Share
Feb 14 2011 8:57AM
www.bnwnews.ca

Silver promises to become the next big buzzword among investors in 2011 and beyond, according to one of the investment industry’s most prescient and successful experts on precious metals.

Eric Sprott is the founder of the Toronto-based investment firm, Sprott Asset Management LP. His renowned hedge fund, Sprott Hedge Fund LP, is heavily weighted in precious metals and has generated an estimated 23% annualized return over the past decade. Other similarly oriented funds under his stewardship have also been stellar performers in recent years.

He’s now so bullish on silver that he launched the $575 million Sprott Physical Silver Trust in November of last year as he believes that: “Silver will be the investment of the decade.”

“I think that silver could easily get to $50 this year,” he tells BNWnews.ca.

This all bodes especially well for publicly traded companies that are already mining silver, he says. Likewise for ones that are developing primary silver deposits or gold deposits with plenty of silver as a byproduct.

“If the price of silver continues to go up, silver stocks are going to perform even better,” Sprott adds.

Sprott says the big catalyst for surging silver prices in the coming years will be exponentially increasing investment demand, which is already beginning to overwhelm existing silver supplies. The mining industry only produces around 800 tonnes of silver per annum. This is a relatively inelastic supply, regardless of silver prices, he adds.

As household investors are becoming increasingly jittery about the debasement of the U.S. dollar and other major currencies, they are loading up in record numbers on silver bars, coins and silver-denominated exchange traded funds, Sprott says.

However, there’s also a quantum shift in investment demand taking place among big players in the precious metals market, including India (which is aiming to increase its imports by about 77 million ounces per annum), and of course China.

“China’s net imports of silver were 112 million ounces last year. In 2005, they were net exporters of 100 million ounces,” he says.

“That’s a 200 million ounce shift in an 800 million ounce annual market that seldom ever grows because production hardly ever goes up. So where’s it all going to come from? We don’t know.”

In fact, silver promises to outshine gold over the coming years, Sprott says. “Silver is the poor man’s gold. Gold has had a great run for the past 11 years. But I absolutely believe that silver will outperform gold this year. Currently, there’s more investment dollars going into silver than into gold.”

Such a game-changing scenario should recalibrate the gold to silver pricing ratio in silver’s favor, thereby eventually restoring it to its traditional level of about 16 to 1, he says. “It’s the easiest call of all time.”

“Silver as a currency always traded in a ratio of around 16 to 1 compared to gold, when it was a currency in the U.S. and the U.K. The current ratio is 48 to 1. If we go back to a 16 to 1 ratio, the implied price for silver would be $85.62 (per ounce).” he adds.

“On that basis, if gold goes to $1,600, then that would value silver at $100. And we certainly think that gold is going to $1,600. In fact, I’m willing to bet that this ratio will overshoot on the downside. It might even get to 10 to one.”

The only reason why silver is still trading at a 48 to 1 ratio to bullion’s spot price is that its price is being “manipulated” by big banks, Sprott says. That’s because they don’t want precious metals to become a popular alternative currency to Fiat money (currencies that are not backed by hard assets).

“Then there’s also a huge short position out there on silver,” he adds.

But time is on silver’s side, he says, as the sovereignty debt crisis deepens in Europe and a continued policy of quantitative easing in the U.S. continues to undermine the value of the greenback.

Courtesy of www.Top40GoldStocks.com

Marc Davis,
BNW Business News Wire

Sudden Merger Mania in Global Stock Exchanges Watched By Truth Researchers

An Irate Donald Trump Warns Economic Collapse Is Coming

Copyright 2011-3011 Chase Kyla Hunter, Reposted Courtesy of The Economic Collapse Blog

A few weeks ago I listened to Sean Hannity interview “the Donald,” aka Donald Trump on his radio show, and Mr. Trump was queried several times during the interview as to whether he was considering a presidential run in 2012. Trump replied that it certainly was not out of the question. His commentary on our present position in the world, and the grotesque mismanagement of our foreign policy was “spot on”. Based on what we have had to endure for “presidential leadership” over the past several decades, I personally believe we could do alot worse than Trump. He has the business brilliance, if any man does, to turn the country around and get it headed in the right direction again. He would be a formidable foe in foreign policy, he most likely has an aptitude for military strategy that would surpass Clinton or Bush, as every business person can tell you that business, at the very top level, is a type of war, and cunning strategic thinking is a prerequisite for success. Trump would bring his personal fortune to bear upon his campaign war chest, and if elected he would bring some much needed respect back to the nation. I am intrigued that he recently made an appearance on the Oprah Winfrey Show with all five of his adult children. This is a shot over the bow, folks. Donald Trump is serious about running for office.

See http://theeconomiccollapseblog.com/archives/even-donald-trump-is-warning-that-an-economic-collapse-is-coming

See: http://theeconomiccollapseblog.com/archives/paper-money-madness-inflation-fueled-economic-growth-does-not-indicate-that-an-economy-is-getting-stronger

Even Donald Trump Is Warning That An Economic Collapse Is Coming

In a shocking new interview, Donald Trump has gone farther than he ever has before in discussing a potential economic collapse in America. Using phrases such as “you’re going to pay $25 for a loaf of bread pretty soon” and “we could end up being another Egypt“, Trump explained to Newsmax that he is incredibly concerned about the direction our economy is headed. Whatever you may think of Donald Trump on a personal level, it is undeniable that he has been extremely successful in business. As one of the most prominent businessmen in America, he is absolutely horrified about what is happening to this nation. In fact, he is so disturbed about the direction that this country is heading that he is seriously considering running for president in 2012. But whether he decides to run in 2012 or not, what Trump is now saying about the U.S. economy should be a huge wake up call for all of us.Trump says that the U.S. government is broke, that all of our jobs are being shipped overseas, that other nations are heavily taking advantage of us and that the value of the U.S. dollar is being destroyed. The following interview with Trump was originally posted on Newsmax and it is really worth watching….Now, you may or may not think much of Donald Trump as a politician, but when a businessman of his caliber starts using apocalyptic language to describe where the U.S. economy is headed perhaps we should all pay attention.The following are 12 key quotes that were pulled out of Trump’s new interview along with some facts and statistics that show that what Trump is saying is really happening.

#1 “If oil prices are allowed to inflate and keep inflating, if the dollar keeps going down in value, I think there’s a very distinct possibility that things could get worse.”

Donald Trump is exactly right – we are headed for big trouble if we continue to allow the Federal Reserve to pump hundreds of billions of new dollars into the system. As I have written about previously, all of this new money will give us the illusion of short-term economic growth and it will pump up the stock market, but in the end all of the inflation the new money is gong to cause is going to be very painful. Just look at how rapidly M1 has been skyrocketing over the last couple of years. Is there any way that we are going to be able to avoid paying a very serious price for all of this reckless money printing?….Already all of this money printing has had a very serious affect on world financial markets. The price of agricultural commodities is skyrocketing and the price of oil has almost reached $100 a barrel once again. The last time that the price of oil soared above $100 a barrel was in the early part of 2008, and we all remember the horrific financial collapse that followed in the fall of 2008.#2 “….you’re going to pay $25 for a loaf of bread pretty soon. Look at what’s happening with our food prices. They’re going through the roof. We could end up being another Egypt. You could have riots in our streets also.”

The price of corn has risen 88 percent over the past year and the price of wheat has soared a whopping 114 percent over the past year. Let’s hope that we don’t have to pay $25 for a loaf of bread in the United States any time soon, but in some areas of the world that is what it now feels like.

Approximately 3 billion people in the world today live on the equivalent of $2 a day or less, and most of that money ends up getting spent on food. When food prices go up 10 or 20 percent in deeply impoverished areas of the globe, suddenly the lives of millions are threatened. The riots that we have seen in Egypt, Algeria, Tunisia and other nations recently were not entirely caused by rising food prices, but they were certainly a big factor.

#3 “I think gold will go up as long as people don’t have confidence in our president and our country. And they don’t have confidence in our president.”

Investors run to gold and other precious metals when they don’t feel secure. We saw that happen a lot in 2010. As confidence in the paper currencies and the financial systems of the world has rapidly diminished, precious metals have become increasingly attractive.

In fact, the price of gold has doubled since the beginning of the economic downturn in 2007. As the global financial situation continues to become more unstable, the demand for precious metals is likely only going to become more intense.

#4 “The banks have really let us down. Number one, they did some bad things and caused some bad problems. Number two, if you have something that you want to buy, like a house, they’re generally not there for you.”

Banks were given massive bailouts with the understanding that they would open up the vaults and start lending money to average Americans again.

Well, that has not happened.

In particular, it has become much, much harder to get a mortgage in the United States today. Not that the big banks didn’t need to make changes to their lending practices, but things have gotten so tight now that it is choking the real estate market to death.

#5 “I see $3.50 for a gallon of gas for cars, and cars are lined up trying to get it and it’s $3.50. It’s a shame, a ridiculous shame.”

Our lack of a cohesive energy policy is a national disgrace. There is no way in the world that a gallon of gas should be $3.50 a gallon.

The U.S. has massive reserves of oil and natural gas that it should be using. In addition, the lack of progress on developing alternative energy sources in light of our sickening dependence on foreign oil is very puzzling. We should be very far along towards solving our energy problems by this point.

Meanwhile, we keep pouring billions into the pockets of foreign oil barons every single month. Unfortunately, Trump was exactly correct in the interview – if something is not done the price of gas is going to keep going higher.

#6 “I think the biggest threat is that our jobs are being stolen by other countries. We’re not going to have any jobs here pretty soon.”

Donal Trump is one of the few prominent leaders that is openly speaking the truth about the predatory economic practices of some of our “trading partners”. Most of our politicians have just kept endlessly promising us that free trade is “good for us” even as tens of thousands of factories and millions upon millions of jobs have been shipped overseas.

Back in 1970, 25 percent of all jobs in the United States were manufacturing jobs. Today, only 9 percent of the jobs in the United States are manufacturing jobs.

Yes, computers and robots have replaced a lot of manual labor today, but technology does not account for most of the decline we have seen in manufacturing.

n 1959, manufacturing represented 28 percent of all U.S. economic output. In 2008, it represented only 11.5 percent. Meanwhile, manufacturing in the “developing world” has absolutely exploded.

#7 “We’re like a whipping post for other countries. We are standing there and just being beaten by South Korea, by Mexico, by China, by India.”

Most Americans have absolutely no idea how lopsided many of our “trade agreements” actually are. Other nations openly manipulate their currencies in order to keep their exports dirt cheap and we allow it. Other nations openly subsidize their domestic industries that are directly competing with businesses in the United States and we don’t complain. Other nations make it incredibly difficult for American companies to do business in their countries while we allow foreign corporations to come on in and do pretty much whatever they want here.

Then there are certain nations (such as China) that brazenly rip off trade secrets from foreign corporations time after time after time and never get penalized for it.

Meanwhile, our economy continues to bleed jobs at a staggering pace. The number of net jobs gained by the U.S. economy during this past decade was smaller than during any other decade since World War 2.

Fortunately, more Americans than ever seem to be waking up and are realizing that globalism is causing many of these problems. A NBC News/Wall Street Journal poll conducted last year discovered that 69 percent of Americans now believe that free trade agreements have cost America jobs.

#8 “All of our jobs are going to China. We’re rebuilding China and other places.”

China is doing great. China is now the number one producer in the world of wind and solar power. They now possess the fastest supercomputer on the entire globe. China also now has the world’s fastest train and the world’s biggest high-speed rail network.

Most Americans don’t realize that China is literally kicking the crap out of us.

Back in 1998, the United States had 25 percent of the world’s high-tech export market and China had just 10 percent. Ten years later, the United States had less than 15 percent and China’s share had soared to 20 percent.

Every single month we buy about 4 times as much stuff from them as they buy from us. Our trade deficit with China has ballooned to enormous proportions. In fact, the U.S. trade deficit with China during this past August was more than 4,600 times larger than the U.S. trade deficit with China was for the entire year of 1985.

So when Donald Trump says that we are rebuilding China he is not joking around.

Nobel economist Robert W. Fogel of the University of Chicago is projecting that the Chinese economy will be three times larger than the U.S. economy by the year 2040 if current trends continue.

Yes, that is how serious things have become.

#9 “We are a laughingstock throughout the world.”

Donald Trump has said on several occasions that his friends and business partners in China just laugh and laugh at us. They can’t even believe what they are getting away with.

We have become an incompetent giant that is the butt of all the jokes.

According to Stanford University economics professor Ed Lazear, if the U.S. economy and the Chinese economy continue to grow at current rates, the average Chinese citizen will be wealthier than the average American citizen in just 30 years.

Our formerly great industrial cities are slowly becoming ghost towns. The number of long-term unemployed Americans is at an all-time high. Tens of millions of Americans can’t even survive without government assistance anymore. The number of Americans on food stamps set a new all-time record every single month during 2010, and now well over 43 million Americans are enrolled in the program.

We really have become a joke.

#10 “The federal government has no money.”

Unfortunately, our federal government has continued to borrow and spend like there is no tomorrow.

According to the Congressional Budget Office, the U.S. government will have the biggest budget deficit ever recorded (approximately 1.5 trillion dollars) this year.

So much for fiscal discipline, eh?

It is being projected that the U.S. national debt will increase by $150,000 per U.S. household between 2009 and 2021.

Do you have an extra $150,000 to contribute for your share?

By 2015 our national debt will be somewhere in the neighborhood of 20 trillion dollars.

It is the biggest mountain of debt in the history of the world by far, and it is the gift that we are going to pass down to future generations of Americans.

If there are any future generations of Americans.

#11 “I hate what is happening to this country.”

We should all hate what is happening to this country. Our economic guts are being ripped out, we are being abused by the rest of the world, America’s infrastructure is being sold off piece by piece, our federal government is drowning in debt, our state governments are drowning in debt and our local governments are drowning in debt.

The only way we can even keep going is to run around to the rest of the world and beg them to keep lending us more money.

The mainstream media keeps proclaiming that we are the greatest economy on earth, but the truth is that we are being transformed into a pathetic loser and our politicians are just standing there with their hands in their pockets letting it happen.

All red-blooded Americans should be horrified by what is happening to this nation. We have been betrayed by corrupt and incompetent leaders. As a nation, we have become fat, lazy and stupid.

Hopefully what Donald Trump and others are saying about a coming economic collapse will serve as a huge wake up call and the sleeping giant will arise once again.

If the sleeping giant does not arise, we are in a massive amount of trouble, because right now the road we are on is leading to the biggest economic collapse the world has ever seen.
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February 3rd, 2011 | Tags: Bankruptcy, Debt, Debts, Economic, Foreclosures, Loans, Mortgage, Mortgages | Category: The Next Great Depression

Silver May Be Headed Toward $26.50+ Per Ounce Soon

 
Post Update: 10.14.2010 By CK Hunter: Copyright Chase Kyla Hunter 2010
  
Since August 11th 2010, [60 days] silver has soared nearly 20%, gaining over $4.00 per ounce in price. I was writing about silver in January, telling readers to begin accumulating as much in hard silver bullion as they could. Those who have taken my advice are most likely sitting pretty by now. I predict silver prices to spike up to at least $26.50 per ounce before correcting back to around $17.52 and hovering in the trough for awhile.

The entrance to an underground gold mine in Vi...

[ Earlier this year I wrote…]  January 2010

Is $100 per ounce silver
 possible in 2010?

These types of sudden upward moves in silver usually happen after a gradual correction downward, and they tend to take the inexperienced metal investing public by surprise. Silver recently corrected back down to about $15 per ounce, from a high of around $18.50, but any new twist in the global economic meltdown i.e. for example, the recent collapse of Greece’s economy, could set off one of those hard to predict “upward price escalating chain reactions” that could very suddenly elevate the price of silver bullion almost overnight. Silver prices do not always follow gold in tandem.

Folk wisdom says to buy and accumulate silver bullion and scrap silver in all small denominations while the price is still depressed at under $20 per ounce. The $20 per ounce price range represents a “psychological threshold” and once silver passes that mark, all bets are off as to how high it could go. Buy silver bullion and hold it. That’s the recommendation.

  
  
Here are several supporting news articles and links:
  
 
  
  

www.thumbcharts.com

1 oz (.999) Fine Silver Buffalo Round – Best Buy

Best Price $19.95
or Buy New $19.95

Market Nuggets: Silver Remains Higher After Hitting 30-Year Peak14 October 2010, 1:22 p.m.
By Allen Sykora
Of Kitco News
http://www.kitco.com/
(Kitco News) — Silver remains higher after hitting its strongest level in 30 years. The metal has been rallying with gold lately on expectations for U.S. quantitative easing and weakness in the U.S. dollar. Silver got an added boost in early London trading from options-related buying, says Afshin Nabavi, head of trading at MKS Finance. Further gains came when buy stops were hit. These are pre-placed orders activated when certain chart points are reached. The market then backed down from the psychologically important $25-an-ounce level, with Comex December silver peaking at $24.95. “It’s been very whippy to say the least,” Nabai says. A key for Friday will be remarks from Federal Reserve Chairman Ben Bernanke as market participants watch for further clues on whether the Fed undertakes further stimulus, Nabavi says. In the meantime, he puts the key near-term chart support around $24 for both spot metal and futures. December silver was up 53.8 cents to $24.47 an ounce at 12:51 p.m. EDT (1651 GMT).By Allen Sykora of Kitco News; asykora@kitco.com14 October 2010, 12:46 p.m.
By Allen Sykora
Market Nuggets: Comex Gold Pares Earlier Gains On Profit-Taking

(Kitco News) — Comex gold has pared much of its earlier gain as some traders sell to exit long positions and book profits. Release of September FOMC minutes earlier in the week confirmed the thinking of many that further quantitative easing is coming, says Kevin Grady, gold trader on the Comex floor with MF Global. Gold since ran higher, with the December futures earlier Thursday hitting a $1,388.10 peak that is a record for a Comex most-active contract. It has since backed down to $1,374.20 as of 12:27 p.m. EDT (1627 GMT), although this was still up $3.70 for the day. “’Right now what is happening is you have some ebbs and flows in the market,” Grady says. “The market is up so high and so fast that you’re seeing some profit-taking.”

By Allen Sykora of Kitco News; asykora@kitco.com

14 October 2010, 9:18 a.m.
By Allen Sykora
Market Nuggets: Comex Gold Continues Rise As Market Participants Flee Dollar

(Kitco News) — December gold futures hit a peak of $1,388.10 an ounce, a record for a Comex most-active contract. “It’s clear the U.S. dollar is under a lot of pressure,” says one trader. “It really is a market where people are running away from the U.S. dollar and looking for some sort of safe haven, and they view gold as a safe haven.” Gold seems to be moving with equities lately, he adds. “The equity market yesterday was reasonably positive about the view that quantitative easing is going to help the economy recover, and that has been a good reason to give assets a lift across the board,” he says.

By Allen Sykora of Kitco News; asykora@kitco.com

14 October 2010, 9:17 a.m.
By Allen Sykora
Market Nuggets: Barclays: Longer-Term Gold ETP Investor Interest Remains ‘Sticky’

(Kitco News) — Barclays Capital says investors are showing a willingness to stick with positions in gold exchange-traded products. “Some very modest profit-taking has emerged from physically backed ETPs, with total holdings falling by 1.6 (metric tons) yesterday, but overall, the longer-term interest remains sticky, with the total metal held in trust just 10 (metric tons) shy of the peak set at the end of September,” Barclays says in its daily research report. The bank says silver prices “continue to ride on gold’s coat-tails, but the ETP interest is more impressive.” The bank reports silver ETP demand rose by 40 metric tons to a “staggering” 14,148, including inflows of 389 so far for the month.

By Allen Sykora of Kitco News; asykora@kitco.com

14 October 2010, 8:34 a.m.
By Allen Sykora
Market Nuggets: Gartman: Technicals “Mandated That We Increase Our Positions Yesterday”

(Kitco News) — Newsletter writer Dennis Gartman says whereas he had been looking for gold to make a correction, technical-chart conditions Wednesday nevertheless “mandated that we increase our positions yesterday” and “we did so.” He says in his daily report: “Not to have done so would have been worse than holding out for the inevitable correction.” Furthermore, he points out that gold in both dollar and sterling terms is rising. “Gold is rising not because the U.S. dollar is falling but because investors globally are dismayed by their currencies generally,” he says. “Governments are racing each other toward some devaluationist no-man’s-land. Gold is the harbor of choice as this war is waged.”

By Allen Sykora of Kitco News; asykora@kitco.com

14 October 2010, 8:34 a.m.
By Allen Sykora
Market Nuggets: SEB Sees Potential For Short-Term Correction In Gold

(Kitco News) –Swiss bank SEB offers caution about potential for a short-term correction in gold while maintaining a bullish long-term view. The metal hit another all-time high Thursday on another wave of dollar weakness, SEB says. “The mix of uncertainty, slumping currencies, exceptionally low interest rates and retail investor hype adds more and more fuel to the fire,” SEB says. However, the bank also says, softening jewelry demand, record speculative positions, stabilizing ETF holdings and reduced worries about European nations with debt issues may limit the upside in the short term. “The main upside risk lies in the dollar,” SEB says. The greenback has been hurt by expectations from another round of quantitative easing, but this is “beginning to get fully priced in,” SEB says. “We believe that temporary dollar rebounds in combination with longs covering positions or taking profits could offer buying opportunities going forward.” The bank says its longer-term strategic view “remains bullish on distrust in currencies and economic uncertainty even though the view has moderated somewhat due to the almost uninterrupted rally since the end of July.”

By Allen Sykora of Kitco News; asykora@kitco.com

US Dollar in Crisis? Russia, China Press for A New World Currency

6.23.2010 Citizen Journalist Video posted by CK Hunter

Tags: dollar collapse, inflation, currency collapse, Russia, China, federal debt, federal deficit, collapse of the dollar