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First Majestic Silver Corp. Message Board

  • jai4524 jai4524 May 2, 2013 9:21 PM Flag

    Read on silver surge

    The last two years have given silver investors an excellent chance to accumulate a long-term position as we've pulled back steadily since April 2011. As the price has come down I have been recommending for some time to dollar cost average and/or pyramid down into silver and silver equities. So what is the path to a surge in silver prices? My primary thesis, much of which is laid out in the background section here, is that the endless easy money policies from central banks around the globe have created a long-term tailwind for the various precious metals. Despite the short-term pressure on the metals, the Federal Reserve's continued accommodative and dovish policies should create a weaker dollar in the long run, inflation and in turn, bolster the prices of gold and silver. Yesterday (May 1), the FOMC statement released indicated the pedal is still to the metal. The Fed left the federal funds target rate between 0% and 0.25% and also maintained the $85 billion-per-month purchases of Treasury and mortgage-backed securities policy in place. I maintain that for the long-term, these policies will be detrimental to the value of the dollar and over time gold and silver will continue to rise. The second key driver that I believe could cause a surge in silver in the next few years off the recent lows is the multiple sources of demand for the metal, in particular technology.

    Sentiment: Strong Buy

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