Silver hits new multi-year intra-day high

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SteveW's picture
Status: Gold Member (Offline)
Joined: Jan 21 2010
Posts: 490
Silver hits new multi-year intra-day high

Silver powered through its $31 resistance level before noon EST today and is currently around $31.60!

Maybe there really is some truth to this silver shortage rumour. Wink

sevenmmm's picture
Status: Silver Member (Offline)
Joined: Jan 19 2011
Posts: 108
Re: Silver hits new multi-year intra-day high

Higher highs!

Now we need a higher low.

A1B2C3D4's picture
Status: Member (Offline)
Joined: Aug 24 2009
Posts: 24
One stock which leverages silver with no execution concerns: SLW

Silver Wheaton is a royalty trust, SLW 

Notice that when silver goes up, that SLW goes up by a higher percentage. It is leveraged. 

SLW is not a mining company. It evidently enters into contracts with mining companies, provides money the miners can use to facilitate their mining in return for which any silver mined will flow to SLW at a fixed low price. These mining companies mine lead, zinc, tin, gold in which silver is a byproduct of their main business. 

here is a link to an article which appeared on Seeking Alpha regarding this SLW company:

the author has written other articles about silver.

This has got to be as close to a sure thing as one could wish for. Hardly anyone is invested in this area. Less than one percent of investors hold a position in gold or silver in any form, stocks, bullion, coins etc. Both gold and silver are being driven up by anticipation of future inflation given the vast sums of paper currency being printed by central banks. Most of the paper has found its way into bank vaults where it sits awaiting enough of a recovery for businesses to resume borrowing. In America there is a fractional reserve system where banks can keep funds in reserve and loan out ten times as much!

SLW is close to $40 a share and as silver rises may soon reach $50.

Given that the traditional ratio of gold to silver is less than 20 to 1 while the ratio is presently about 45   there is no telling how high gold will go although silver will gain a higher percentage.  There is a shortage of silver as all that is brought to market is used up mostly by industrial uses as well as jewelry and coinage to the tune of 900 million ounces a year. There are no longer government silver reserves adequate to cover the gap between mine product of over 600 Million ounces a year and growing industrial use.

Other sources of info :

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