Brian Hicks, Founder & Managing Editor of Wealth Daily published an article dated May 29, 2013 in which he says the price of silver will soar in 2013 for all the reasons we have been talking about for years. He writes:
"A few of the factors at play include:
•Obama's second term and the coming 2013 fiscal cliff, when taxpayers will face an extra $500 billion in tax hikes.
•Central banks are starting to load their safes with physical precious metals, both silver and gold.
•Sales of silver are drastically outpacing sales of gold, in both private and institutional holdings, leading to a much more rapid surge in spot prices.
•And to top it off, silver mining companies across the globe have been struggling to find enough silver to meet the industrial demand side of the equation."
I want to believe most of this, but I cannot reconcile the current price of silver with "...struggling to find enough silver to meet the industrial demand side of the equation." If there is a shortage of silver, why is the price of silver so low?
Also, if Central banks are starting to load their safes with physical precious metals, why is the price of silver so low?
What do you guys think about this article? I am over loaded with silver and gold in my account and I hope this guy is right.
I am torn on what to think with the Silver markets. In general, I think the long term outlook for silver is very nice. I like the industrial demand for the metal especially since industries are using it a lot for growing technologies such as solar panels. Silver is the best conductor of energy and you cannot replace it at the moment. The world is still printing a lot of money and I think it will only get worse in the future which is a positive for the metals markets.
On the flip side, the Blackrock CEO came out today and said that he thinks the DOW could be 28,000 in 6 years and if that is true (or anywhere near it) we all know that metals tend to hurt investors when the
economy is flourishing. I will continue to monitor everything but for now I am holding onto my shares and like SLW around these prices.
It never ceases to amaze me how the media will spin, bend, mis-quote and take things out of context;
Larry Fink was expressing how over the past 3 years equities EPS grew 12 times EPS to 15 times EPS.
He then said he was long 3 years ago when equities were "cheap". 12 times was cheap.
He then said they are now at or near Fair MArket Value, but, given the Fed's policy which HE believes will continue and although the economy is sluggish, it will creep along and grow,so he would still buy equities, given long bonds are guaranteed to be a loser for anyone looking on the long end of the curve.
He said,IF Corporate earnings keep pace with recent growth, why buy bonds.
Joe Kiernan then said, well then at 8% growth over 5 years we're talkin a DOW at 28,000, right?
Fink responded "Sounds good eh"
Trust me, Larry Fink's comments are being distorted.