Buy Silver Now?

Do you want to buy silver? Have you considered seasonal price patterns before jumping in with both feet? What typically has happened to the price of silver, in past years, following a March/April purchase? Does it make sense to buy now or wait to make that purchase?

2004 Silver Chart

In 2004 we can see that if we had made purchases of silver bullion in the first trading day of April, by September our investment would still be unprofitable. Additionally, multiple buying opportunities would still present themselves had we waited and not purchased in April. So what happened in the following years?

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2005 Silver Chart

In 2005 our investment would not have suffered too badly but we would have had multiple buying opportunities had we been more patient.

2006 Silver Chart

2007 Silver Chart

2008 Silver Chart

2009 Silver Chart

2010 Silver Chart

2011 Silver Chart

2012 Silver Chart

The bottom line is that in every single year since 2004, there would have been equal or better buying opportunities in the price of Silver after the month of April. In some years, such as 2004, 2007, 2008 & 2012, the price of silver dropped significantly in the months following the month of April. Investors can be their own worst enemy when they focus on the short term and psych themselves out. In a bull market an investor can simply buy and hold for the long term, but this is easier said than done. If their purchase does not rise the moment they purchase it they can doubt themselves and sell low. Looking for lower risk opportunities to average into new positions can really help improve your portfolio##Q##s performance and help you stomach intermediate term price swings.

Source: http://www.marketoracle.co.uk/Article39705.html

Storing Silver for the Next Generation

Many parents looking to the future and concerned about their children’s financial security have been reframing reasons for owning silver as a long term investment.

Awareness seems to be growing among parents that an outstanding way to provide for their child##Q##s future educational expenses is to employ silver ownership as an investment vehicle.

These college expenses typically include tuition, study materials like books and computers, travel, and room and board costs.

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Buying Silver Versus Section 529 College Saving Plans

Silver increasingly looks like an excellent private college saving vehicle, especially since many of the pre-funded college tuition savings plans made under Section 529 of the Internal Revenue Code seems to be crashing and not living up to their investors’ expectations. This issue has already sparked a substantial controversy in the State of Alabama.

Also, holding silver for such well-defined future purposes tends to provide long term investors with a better perspective. This helps them avoid getting caught up in an investment world obsessed with day trading for a short term profit, despite those gains being measured in terms of an ever-devaluing paper currency.

Fortunately, at today’s very reasonable prices, it does not take much money or very long to grow a small collection of silver that will be enough to cover a reasonably priced college education.

Avoiding the Student Loan Bubble With Silver

Obviously, the growing costs associated with education — as evidenced by the trillion dollar student loan bubble with an unprecedented and growing 17% default rate — seems unsustainable to say the least.

A seemingly meager investment in silver made at today’s prices could eventually prevent your children from having to rely on student loan debt where they would end up owing a large amount of money by the time they graduate. This logic might even impress those investors who are not otherwise predisposed to understanding or otherwise caring about the white metal.

For example, making just a $30,000 investment in silver today for your children’s education will most likely grow in value many times over a holding period of 15 years. Silver’s future appreciation will very likely outpace both the consumer price inflation index, and will probably even exceed the higher rate of inflation in college education, which is currently running at ridiculous levels.

Furthermore, if your child ultimately decides not to go to college, or gets a scholarship to fund their studies instead, your prudent investment in silver will provide quite a nest egg to help them start out in life, buy their first home, etc.

Effect on the Silver Market

Certainly, the wider use of silver as part of college savings programs would tend to legitimize the currently misunderstood “silver stackers”, who often tend to be characterized as hoarders.

The more small, retail investors who start purchasing silver for long term purposes, such as college savings plans, the more the price of silver should rise over time.

Source: http://www.marketoracle.co.uk/Article39707.html

SILJ New ETF For Investing in Silver Mining Stocks

David Zeiler writes: With silver looking even more alluring than gold lately, it##Q##s smart to consider investing in silver miners – and a new ETF gives investors one more option.

The PureFunds ISE Junior Silver ETF (NYSE: SILJ), launched in November, differs from other silver mining ETFs in that it focuses only on junior silver miners.

The PureFunds Junior Silver ETF joins just two other silver mining ETFs, the Global X Silver Miners ETF (NYSE: SIL) and the iShares MSCI Global Silver Miners ETF (NYSE: SLVP).

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While silver mining ETFs, like silver mining stocks and gold mining stocks, have not tracked the rise in price of the precious metals themselves – many are down anywhere from 10%-20% year to date – the tide is ready to turn.

Many signs point to increasing silver demand in the months ahead, and in recent weeks more money has started to shift out of gold and into silver. Investing in silver mining ETFs is one way to get out in front of this trend before the rest of the crowd.

“For 2013, I think silver, like gold, will set a new all-time nominal price record, likely reaching as high as $54 an ounce,” Money Morning Global Resources Specialist Peter Krauth said in his 2013 silver price forecast.

Why Silver Prices Will Rise and Boost Silver Miners
Silver prices have languished so far in 2013, meandering from about $32 to about $28.50 currently.

But some technical analysts say silver prices have just about bottomed out and are poised for a big rally.

That##Q##s being foreshadowed in a trend of increased buying of physical silver in recent months by silver-backed ETFs like the iShares Silver Trust ETF (NYSE: SLV). There##Q##s also been unusually strong demand for Silver Eagle coins from the U.S. Mint this year.

What##Q##s more is this latest projection that##Q##s bullish for silver prices: Industrial demand for silver is expected to rise 7% this year and another 6% next year.

“People have been buying silver both as a base and precious metal,” Rohit Savant, a senior commodity analyst at the New York-based research company CPM Group , told Bloomberg News. “Economic demand will push prices higher.”

When silver prices do start to make their climb, expect silver miners to go along for the ride.

Investing in Silver Miners, Junior Style
Because it##Q##s concentrated on small-cap junior silver miners, the PureFunds Junior Silver ETF is prone to be more of a high-risk, high-reward play on silver.

According to PureFunds, the Junior Silver ETF “seeks to replicate as closely as possible …
the price and yield performance of the ISE Junior Silver (Small Cap Miners/Explorers) Index” by tracking “public, small-cap companies that are active in the silver mining exploration and production industry.”

Junior miners tend to focus more on exploration than their larger brethren, which is why they tend to be a lot more volatile, prone to giant price swings. Individually, they can make you rich or take you to the cleaners.

“Junior mining stocks are not for the faint of heart,” Krauth warned.

But using an ETF as a tool for investing in silver miners does help mitigate the risk.

Here are the top 10 silver mining stocks in the PureFunds Junior Silver ETF:

MAG Silver Corp. (NYSE: MVG): 7.79% of portfolio
■Fortuna Silver Mines Inc. (NYSE: FSM): 6.98% of portfolio
■G-Resources Group Ltd. (HKG:1051): 6.38% of portfolio
■Mandalay Resources Corp. (TSE: MND): 5.99% of portfolio
■Endeavour Silver Corp. (NYSE: EXK): 5.73% of portfolio
■Orko Silver Corp. (PINK: OKOFF): 5.68% of portfolio
■Aurcana Corp. (PINK: AUNFF): 5.60% of portfolio
■Gabriel Resources (PINK: GBRRF): 5.42% of portfolio
■Silvercorp Metals Inc. (NYSE: SVM): 5.37% of portfolio
■Bear Creek Mining Corp. (PINK: BCEKF): 4.65% of portfolio

“There are few other industries where $1 spent drilling in the right place can return $100 dollars to early investors,” Krauth said. “Junior miners offer that explosive potential.”

Source: http://www.marketoracle.co.uk/Article39709.html