Money Morning Global Resources Specialist Peter Krauth stated current weakness in gold and silver prices "has produced an excellent chance for true contrarian investors" to add to their positions. "We might not have hit the absolute near-term bottom, but I believe the odds are great that we're fairly close," Krauth stated because the sell-off accelerated in February.
Factors to Anticipate Greater Silver Prices
A number of investors had feared the U.S. Federal Reserve may finish or scale back quantitative easing, which has driven silver prices greater, following minutes from a January meeting showed officials in the central bank expressed issues concerning the month-to-month buy of $85 billion in securities.
However Fed Chairman Ben Bernanke's testimony before Congress today (Tuesday) underscored the Fed has no instant intention to change its course. This should reassure silver investors. The Fed's simple cash policy is just one reason to become bullish on silver, regardless of its current lackluster overall performance. Rare Coins, Silver Coins, Gold Coins, Learn more >> http://www.silverpricestoday.cc/
The investment rate for the metal is robust, analysts point to "oversold" circumstances, and bargain-hunters are lurking, prepared to pour cash in to the metal. "Silver is grossly oversold at present levels, more so than any time in the previous 5 years," James Carrillo, senior portfolio adviser for precious metals investment firm Swiss American Trading Corp., told MarketWatch.
Simultaneously, investment demand remains powerful. This really is important, given supply will outpace demand by 6,411 tons this year, based on study from Barclays.
Furthermore, industrial demand is on the rise. Analysts predict expansion in the international electronics and solar power industries, which use big amounts of silver, will develop at a faster clip this year than the general worldwide economy. Commerzbank AG stated "silver is establishing itself as a valuable metal with an industrial character, setting itself considerably apart from gold."
Frederique Dubrion, president and chief investment officer of Blue Star Advisors SA in Geneva, told Bloomberg News, "With silver, you are able to benefit from both sides: its safe-haven status and also the reality that it is also an industrial commodity. Given some positive top indicators, particularly in the U.S., investors would most likely favor turning to silver instead of gold."
Investing in Silver
Silver and gold have long been viewed by investors as safe havens. In 2007, when investors panicked concerning the monetary crisis, gold soared 30% and silver gained 14%. Silver's a especially great bet now, with mounting issues about inflation, high unemployment, the slow recovery right here and abroad and financial uncertainty with the feasible sequester cuts looming. "Investors seem to be placing their cash increasingly into silver ETFs as an investment option. It could only be a question of time prior to the buoyant ETF demand causes the silver price to rise," Commerzbank wrote in a report.
Coin collectors likewise have been buying up silver: In January, the U.S. Mint sold out of 2013 silver American Eagles following selling 6.01 million ounces of Eagles, probably the most since January 2012. You are able to cash in on greater silver prices by investing in the exchange-traded-