The Precious Metal That Glitters Is Silver - Discover Why Silver Prices Will Not Quit In 2011

April 23, 2011 - PRLog -- You will find presently 75 distinguished analysts and experts, who see gold at over $5000 within the not too distant future. Gold is hitting record highs and going a lot higher as all world financial systems inflate their monetary base to vastly improve liquidity using the objective of averting another 1930s type of global depression. As a result, we might anticipate the US dollar gold price to forge ahead to $1600 and a $50 silver price sometime soon in 2011. Visit http://silver-dollar-values.com for a lot more silver and gold ideas.

It continues to be a wild week within the precious metals marketplace. Gold eventually broke through the psychological $1500 gold per ounce mark, and silver topped $46 silver per ounce. Silver bugs also rejoiced as 1 ounce of silver is now worth much more than 1 share of J.P. Morgan, the investment bank that's believed to manipulate the cost of silver.

There are lots of various views on how high silver and gold will go. On Wednesday, CEO Eric Sprott talked about one of the key indicators he studies, the gold to silver ratio. Eric Sprott is really a highly thought of asset manager. Visit http://silver-dollar-values.com for a lot more silver and gold ideas.

These fascinating points that Sprott discusses point to greater silver prices:

For the past millennium, 1 ounce of gold would have bought you 10-16 ounces of silver, which is about in line using the occurrence of every mineral within the earth’s crust. Sprott continues on to explain that the gold silver ratio struck a high in 2009 of 80-1. Which represents a big deviation from the average 16-1. Since 2009, the relation has been dropping closer to the average. These days, with gold at $1505 and silver at $46.60, the relation is 32-1.
Visit http://silver-dollar-values.com for a lot more silver and gold ideas.
Follow the intelligent money. Silver is also acquiring steam by looking at the flows of cash. In 2011, investors have withdrawn about $3 billion from . Nevertheless,  has observed net inflows of $370 million within the exact same period. Sprott’s own Physical Silver fund also exhibits the high demand for physical silver, as its premium is about 18%. Sprott’s Physical Gold fund merely has a premium of around 4%.

Eric Sprott continues on to explain that he thinks, just based on supply and demand, the gold silver ratio will need to return to single digits before an balance is reached. Sprott has been invested in silver for 11 years, and has usually believed that the cost of silver would hit $50 per ounce. That’s a silver price target that might be reached any day now. I totally agree with Eric Sprott. The gold price will keep on rising in 2011, and also the silver price will keep on skyrocketing to new highs in 2011. My recommendation would be to buy silver and buy gold now while the prices are still fairly inexpensive.

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