May 22, 2013

Why Silver and Gold Prices Are Falling


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Metals started the week in the red, leading investors to ask why silver and gold prices are falling today. Money Morning Capital Wave Strategist Shah Gilani joined FOX Business‘ “Varney & Co.” to answer that question.

He told host Stuart Varney about the big trading move that pushed metals down today. He also explained why he would keep buying gold.

Shah also recommended a stock that pays a 10% dividend yield and says the stock will be “safe” as long as the housing market remains stable.

Hear Shah’s recommendation and his thoughts on why silver and gold prices are falling in the following video.

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5 Factors That Will Push Silver to $250 an Ounce


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All bull markets go through periods of consolidations and corrections. And precious metals are no exception.

There has been plenty about gold’s swan dive, but less talk about silver. And at this point there’s more potential for silver than gold…significantly more.

Because the global silver market is relatively small, silver prices tend to be more volatile; the pounding selloff we witnessed in silver this past month is a testament to that fact. But volatility works both ways, so when silver rises, its price can explode higher.

That’s exactly what happened in April 2011, when silver prices rose by 170% in the space of just 7 months. That’s why silver investors say investing in silver is like buying “gold on steroids.”

And right now, it looks like the silver market is on the cusp of doing the same thing all over again. According to our research, the next stop could be $40 by year’s end, and $60 by the end of 2014. And much higher after that.

Here are five key factors that will drive silver higher – significantly higher – in coming years.

To continue reading, please click here…

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Investing in Silver: Price Rally Gets Legs


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In a week chock-full of potentially bullish news for those of us investing in silver, we weren’t disappointed. Silver prices enjoyed a solid rise this week.

Silver prices hit six-month highs Friday and headed for a 2.5% weekly rise.

Investor interest has piqued after months on the sidelines and just in the last month, silver prices jumped more than 20%.

Believe it not, its gains have outpaced gold’s rise – which hasn’t been too shabby with its own 10% increase in the same time period.

Silver ETFs have also soared during this time. The iSharesSilver Trust ETF (NYSE: SLV) is up 24.2% to $33.38, outpacing the 10.7% rise in SPDR GoldTrust ETF (NYSE: GLD), which is up to about $171.00.

But why does it seem like few people have noticed the silver bull party?

ETF Daily News wrote that silver’s “move has been gradual and steady, as opposed to a number of days withhigh movement. Over that same time period, gold has jumped by about 9.5% with about 100 times the attention from analysts and investors around the world.”

Silver’s recent volatility, which is always more so than its fellow precious metal gold, is another reason for its outperformance. The price ratio between the two precious metals since mid-August has moved about 10% in silver’s favor.

Even more interesting, since the beginning of the year, silver has outperformed gold – this is a first.

But anyone considering investing in silver could perk up to the white metal now that the U.S. Federal Reserve has given commodities more reason to shine.

To continue reading, please click here…

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Investing in Silver: Double Down on the White Metal’s Gains


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Gold remains the favorite of precious metals investors, but silver is now a strong number two…with a bullet.

That means you should consider investing in silver now before it goes even higher.

In case you haven’t noticed, after wallowing around in the mid-20s for months, silver prices have shot back over $30 an ounce.

And thanks to wildly bullish technical and fundamental indicators, silver could soon retest its 2011 high, or even blow through it.

If that happens, silver’s run-up will hand investors a fortune, so here’s how you can cash in.

Turnaround in Silver/Gold Ratio

Historically, the price of silver per ounce has usually been equal to around 1/16th of an ounce of gold,meaning it took 16 ounces of silver to equal the value of a single ounce of gold.

But over the past decade, gold has taken off, trading as high as 60-70 times the price of silver.

That is, until last year. As silver prices rose to nearly $50 an ounce, the ratio fell to 30-1.

But as prices for the white metal settled near $27, the ratio has skyrocketed back up.

Right now, you get 55 times more silver for your money than gold.

But it would still have to triple in price to even sniff where it should be in relation to gold.
And there are signs that this is just what’s going to happen.

Strong Signals for Silver Price Rally

From a technical viewpoint, the rally in silver may be just beginning.

You see, the silver futures markets are in what’s known as “backwardization.

To continue reading, please click here…

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Invest in Silver Before Prices Climb Higher


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Tags: how to buy silver, investing in silver, silver commodities, silver efts, silver price, silver price forecast, silver price trends, silver prices

Read the original article at Money Morning