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LATEST NEWS ABOUT SILVER PRICES AND MARKETS

Monday, June 11, 2012

Spanish Bank Bailout Sets Up $2,000 Gold & $60 Silver This Fall | Resource Investor

Spanish Bank Bailout Sets Up $2,000 Gold & $60 Silver This Fall | Resource Investor

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Euro-zone finance ministers panicked this weekend and agreed to a preemptive announcement of a $125 billion bailout for the Spanish banks, bringing the grand total for bank bailouts to $600 billion when Ireland, Portugal and Greece are added.
Money printing on this scale has only ever been good for precious metal prices by historical precedent. The bank bailouts are an example of money creation at the source with banks able to lend more against this new capital injection and sterilizing bad debts.
Precious Metal Prices
It sets gold up to power above the $1,923 all-time high of last September and hit $2,000 an ounce this fall, while silver will as usual outperform to the upside and cross the 1980 all-time high of $50 and go to $60. This is only what we heard in the Dubai Old Souk earlier this year (click here).
Of course the euro-zone politicians have been panicked by the upcoming Greek election on June 17 to do something now rather than wait for the contagion to hit Spain. It remains to be seen whether preempting market fears has actually put them ahead of the curve.
Nobody really knows the likely course of events after the Greek election. Watching the TV programs with politicians lashing out at each other smacks more of anarchy than a stable democracy. But many have begun to question the practicality of leaving the euro.
The single currency was not designed for countries to come and go. Liquid assets in euros have already fled Greece but going back to an independent currency would still mean huge losses for the rich, although it would also create a buying opportunity.
Perhaps then the euro zone will bite the bullet and accept even bigger losses on Greek debt, and create money to save its banking system as an alternative. The sudden cave in over Spain at the weekend certainly suggests that is the way the wind is blowing.
Monetary Inflation
More and more paper money in the system, more and more sovereign debt, it can only end badly and most certainly with much higher inflation levels. Inflation in China jumped last month as the world’s third largest economic bloc slowed down.
Investors who want to beat inflation are left with fewer and fewer options. Central banks cannot print gold, they can only buy it themselves as an inflation hedge and help to push up the price. Silver is a tiny market that will follow and outperform gold as a sister monetary metal.
There are few win-win scenarios for global investors in these markets, expect more and more investors to jump on this train. That is why prices are going higher.

Equity Research on Endeavour Silver Corp. and Hecla Mining Co. - Silver Miners Set for Strong Second Half - MarketWatch

Equity Research on Endeavour Silver Corp. and Hecla Mining Co. - Silver Miners Set for Strong Second Half - MarketWatch

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Precious Metal Silver Prices Over the Next Few Years: The Silver Institute Announces the Release of a Report on China's Silver Market

Precious Metal Silver Prices Over the Next Few Years: The Silver Institute Announces the Release of a Report on China's Silver Market


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Data on China's future outlook and demand, becoming the second largest consumer of precious metal silver, should indicate their impact on the global silver market in the next few years. Smith McKenna, LLC responds to the Silver Institute's announcement for those looking to invest in silver.
(PRWEB) June 11, 2012
Focusing on global demand, China has become the second largest consumer of silver worldwide. The silver institute has a report in the pipeline which will detail China's impact on the silver price in the next few years. The report is scheduled for release later this year in October. Just twenty years ago, China's silver demand represented only three percent. Today it is more than five times that, seeing 16% - with forecasts of it going much higher. Those looking to invest in silver could benefit significantly from this emerging data.
"Many knowledgeable observers of the Chinese market believe that silver demand will continue to grow significantly over the rest of this decade, therefore increasing China's Importance to the global market," said a rep at the Silver Institute.
Stephen M Smith, who is the managing member at Smith McKenna, LLC believes that silver could potentially double in value over the next few years, citing the Silver Institute's upcoming report as something to keep a close eye on. Silver has nearly doubled in the last two years, something that we could see a repeat of again. Smith has been accurately predicting macroeconomic trends for over 20 years. He's currently offering a free investing book to a limited number of people in order to educate the public on how to invest in silver, and increase their chances of success from the start.
Silver responds similarly to gold; however its influential ties to industrial growth and manufacturing separate it, making it a wise investment choice with stimulus efforts, worldwide economic rebounding and the demand from China all expected to increase, noted Smith.


Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2012/06/11/prweb9585928.DTL#ixzz1xUzsY433

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