According to precious metals firm Monex, investing in silver is an “Extrodinary Opportunity”. When silver starts to move it could quickly shoot higher. A silver bull market is underway and can start to gain steam.
People are clamoring to buy silver. The silver ETF (SLV) alone has sucked 296 million ounces of silver off the market. New silver ETFs are an incredibly bullish driver for silver prices because the pool of readily available above ground stockpiles of silver are already extraordinarily low. Demand for silver exceeds the amount that is mined year in and year out.
Precious metals buying from China and heavy investor demand has pushed silver up to $18.27 per ounce. The Chinese government is now actively encouraging its citizens to buy precious metals. This is very bullish for both gold and silver.
Silver has the benefit of not only being an investment metal, but is also used heavily by industries. Over 50% of the world’s silver demand is consumed for industrial use and this could rise substantially as business activity picks up. Silver’s industrial uses are the result of its unique properties, including excellent thermal conductivity, electrical conductivity, and reflectivity. It’s used in coinage, digital products, water and air purifiers and more… Silver is used for coatings and has anti-bacterial properties. In fact, most electrical components contain silver. Silver is necessary for worldwide economic development and will get a boost if the U.S. can avoid a double-dip recession.
Silver should do well if things get worse too, making it a great hedge. Many investors are suspicious of paper-fiat-currencies and Wall Street money managers are piling into silver. Silver will benefit from the “reflation trade”, which is playing out due to central governments attempting to stimulate the economy by increasing the money supply. Hard assets like silver will maintain their purchasing power in times of currency devaluation or heavy inflation. Silver should perform well in times of geo-political risk too. For example, silver would blast higher if that nut job in North Korea decides to detonate another atomic bomb or if those terrorist that kidnapped Persia decide to attack Israel.
Invest in silver by buying silver bullion bars or buy silver coins like American Silver Eagle bullion coins or Canadian Silver Maple Leaf coins. Or buy the iShares Silver Trust (SLV), which is silver tracking ETF that mirrors the price movements of silver bullion. SLV trades just like an ordinary stock. Buying this ETF is a cost-effective, liquid and secure way to access the silver bullion market.
SLV looks good from a technical perspective. SLV’s 50-day simple moving average (SMA) is rising which indicates the shares will trend higher. Plus, the chart below shows multiple up-trendlines which is a strong buy signal.
The iShares Silver Trust (SLV) closed today at $17.89 per share. I expect it to run over $20 per share in the next couple of months. I like silver so much that I told the readers of my Options Power Trader to buy calls on the SLV to go for a 100% or more gain in just days or weeks…
Of course buying call options on SLV are riskier than just owning the shares, but you have tremendous leverage and your profit potential is higher too. You control silver for only 80 cents per ounce, that’s around 4 cents on the dollar.
Best Wishes,
Ted Peroulakis, MBA
Financial Analyst
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hey, r u telling to buy call options on slv , or buy slv? if u buy options, do u know how risky it is as silver goes yoyo every time it moves it is 3-10% a week and sometimes 5 % a day, so it would be a very very riskier way to getting leveraged to a silver price, which is already a leveraged way to buy gold or gld,rather i would suggest to buy physical silver which is anyway going to the moon(25-30$), so why do u want someone to gamble in such a way ,when u can make hefty profits by buying slv, gld or both in a physical way,it would be better if u go to las vegas rather than gambling on futures and options on silver.JUST BUY GOLD AND PREFERABLY SILVER NOW AND SIT,WAIT AND RIDE THE BULL.DON’T BE SO GREEDY.BE SAFE,AND BETTER LATE THAN NEVER
Hi, what has happened to the ‘great silver find under the Wall of China’ I see that the newsletters are still carrying the article that says it will come to market next month!!!