Silver Prices Going Up
Why is Silver up today?
There is much more to the rise of silver prices than a QE3 Rally. Living up to its reputation for swings, silver hit a six-month high in September at $35.10. With no time for a pause in monetary actions, the Bank of Japan announced Wednesday that it would expand its stimulus program with 10 trillion yen ($126 billion). Japanese silver investors reacted immediately to this news driving up silver prices by 2.9%.
Do not forget with QE2 in 2011, silver rose to almost $50 an ounce.
Analysts wrote of silver “We remain bullish â€¦ and see this as a healthy consolidation after a strong rally.” As investor interest sat quietly for months sitting on the sidelines silver prices spiked more than 20% alone in August of 2012.
Believe it not, its gains have outpaced gold’s rise of 10% within the same time frame. ut why does it seem like few people have noticed the silver bull party?
ETF Daily News wrote that silver’s “move has been gradual and steady, as opposed to a number of days with high movement. Over that same time period, gold has jumped by about 9.5% with about 100 times the attention from analysts and investors around the world.”
Silver’s recent volatility, which is always more so than its fellow precious metal gold, is another reason for its outperformance. The price ratio between the two precious metals since mid-August has moved about 10% in silver’s favor.
Even more interesting, since the beginning of the year, silver has outperformed gold â€“ this is a first.
But anyone considering investing in silver could perk up to the white metal now that the U.S. Federal Reserve has given commodities more reason to shine.
Commodity Rebalancing Underway
Investment demand should also increase for the metal thanks to the effect of global monetary easing.
Brad Cooke, chairman and chief executive of Endeavour Silver Corp.said to MarketWatch that it will “take off again as we see more monetary inflation/economic stimulus programs by governments in America, Europe and China.”
He sees silver hitting the $40 mark within the next few months.
Sophisticated and successful investors always invest with the primary trend. Gold’s primary trend is up, targeting at least $3,130.00; silver’s primary is up targeting 16:1 gold/silver ratio or $195.66
Precious metals has always been a safe haven for investing in uncertain economic times. Precious metals are assets that will never lose their value. They are not subject to systematic risks as fiat/paper money and hedge/protect your hard earned wealth against inflation and other threats of devaluation. Cornerstone Asset Metals was established to help guide investors safely in and out of the precious metals market.
Learn more about how buying silver today is a smart move for your investment portfolio.
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Past performance is not an indication of future potential values.