Like gold, silver’s fate now lies in the hands of the individual investor and institutions. Regal Assets!
The advent of gold and silver exchange-traded-funds (ETFs) over the last decade has resulted in a massive consumption boom as these funds lunge after physical supplies.
Silver industrial demand has historically closely tied to the global economic cycle. But industrial demand has now taken a back seat to ETFs. Provided ETFs continue to command a larger percentage of total available supplies in the silver market, spot prices will continue to rise.
“I also suspect most money managers,” says Eric Roseman, Editor of Commodity Trend Alert “including pension funds, have yet to allocate meaningful positions to silver. And as prices bust through the next resistance level of $21 an ounce, this will change – and rather quickly.
Silver’s high in this rally was $20.78 an ounce in March 2008. We should hit that level and violate resistance before the year is over, possibly during the first quarter in 2011.
Silver’s inflation-adjusted price since 1980 is $128 an ounce. And it’s quite possible we’ll reach half that threshold before this bull is laid to rest.
I would use every correction as an opportunity to accumulate silver.
Investors should concentrate their silver investments in physical bullion, mostly in coins. This includes the Canadian Maple Leaf and U.S. Silver Eagles. I’d also complement this asset class allocation with a few large-cap silver mining companies like Silver-Wheaton (NYSE-SLW) and Fresnillo (London SE-FRES.L). If you’re looking to “polish” up your portfolio for the long haul, you should buy silver now, before it hits $75 an ounce, Eric Roseman, recommends.
A Pause on the Road to $75 an Ounce
His forecast (ever since 2002) continues to peg silver hitting at least $75 an ounce in this bull market. But between the bear and the bull….here’s a little lesson of reality:
For those in the know, forget it, but those in the not know, or without full clarity about the bull and bear scale with its ups and downs and the bumps and grinds, this odd relationship, goes like this: The “bull” and “bear” are the oddest friends in the market jungle…to describe them comes from the way each animal attacks their opponent. The bull thrusts its horns up into the air while a bear swipes its paws down. So, you see, the actions of these animals are also the metaphors for the movement of a market. If the trend is up, it’s a bull market. If the trend is down, it’s a bear market.
Just keep tuned to Regal Assets each week on how it yo-yo’s so they can tell you when to buy silver and gold … and when to cash out and enjoy the best returns for getting in at the right time.
Opportunity is brewing here with Regal Assets, gaining an edge on the masses. It’s not just a gold company selling you coins at half-assed prices, but a relentless pursuit to give you life-changing wealth innovative opportunities.
But if you missed any of this week’s messages I have given you, pour a glass of Merlot and catch up. Puh-lease! Don’t get crushed by an erratic market.