Is Silver Really Going To Over $50? Will Gold Be Truly Going To Over $2,000?

Oct. 31, 2011 - PRLog -- A couple of months ago, the gold:silver ratio was 31. It moved all of the way as much as 56. We’re back down to 52 now. But in the longer term, that gold:silver ratio is going to continue to fall, which means that silver is going to continue to outperform gold. My bottom line is the fact that in the event you can deal with the volatility, own some silver because silver is going to outperform gold as we go forward. Go to http://www.silver-dollar-values.com for unique silver and gold investing ideas.

China wasn’t a silver seller and we had been experiencing industrial demand destruction as the photography business wound down its use of silver. Now we're looking at growing industrial demand as China and also the BRIC economies move toward industrialization having a powerful middle class demanding more electronic equipment. That bodes nicely for Silver demand long term and changes the ratio. We also like silver’s new photovoltaic sector demand. This, together with elevated biomedical use, is going to be a substantial demand growth component long term.

From here, silver is going to take the Lead from gold. I believe each gold and silver are nonetheless vulnerable to continuing weakness in the S&P 500. But I can start to get very excited about gold taking a run at and through the recent $1,900/oz. highs. It’s on that move that I would expect to see silver come back to life. Go to http://silver-dollar-values.net for profitable investing ideas.

We have seen sharp breakdowns in the uptrend of the Brazilian real, Canadian dollar, Australian dollar, South African rand and Asian stock markets. That tells me there is a deflationary wave underway in financial assets. But, at the same time, we have the magicians of Europe trying to pull a rabbit out of a hat to salvage the euro. It’s against that backdrop that I believe people are going to keep coming back to the fact that gold is the only place to hide. Silver will play as the more volatile cousin of gold.

Last week, spot silver rallied an expected, posting a monthly high of $35.653 on Friday. Fresh news of US economy’s expansion in Q3 helped push the precious metals higher as markets continue to grow in confidence. Spot silver prices added more than 16.3% from the start of October and are expected to rally higher further in Q4, especially after the EU reached a positive agreement.

Silver prices had been also pushed higher by a weak USD. Silver for December delivery, posted a five-week high as optimism over EU deal triggered demand for the precious metal. Analysts are seeing the industrial component of silver kick in as it tries to catch as much as gold. Uncertainty over how the EU plan will play out also encouraged investment for the dual - purpose metal.

The chairman and chief investment officer of Leeb Capital Management, Stephen Leeb, is a big fan of silver. In a recent interview, he explained why he thinks the Silver Price is heading for triple digits, like over $100 per ounce.

You have a possible, utter squeeze coming on silver, a monetary metal with vital industrial applications. Silver’s trading about $39 and hasn’t even come down ten percent since the marketplace started sliding. It is an excellent hedge in deflation. You are going to have demand for silver coming from two places, which I do not believe you’re going to have the ability to satisfy, given that silver production today is rising at a lot slower rate than it was in 2010, despite the reality that silver prices are greater. That dictates dramatically greater prices for silver. Go to http://silver-dollar-values.com for profitable investing ideas.

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