Gold and Silver, Are You Brave Enough to Buy Low? :: The Market Oracle :: Financial Markets Analysis & Forecasting Free Website

Gold and Silver, Are You Brave Enough to Buy Low? :: The Market Oracle :: Financial Markets Analysis & Forecasting Free Website

www.TheSilverPrice.info

Investors Would Do Well to Accumulate Physical Gold and Silver as Alternatives to Paper Currency - International Business Times

Investors Would Do Well to Accumulate Physical Gold and Silver as Alternatives to Paper Currency - International Business Times

www.TheSilverPrice.info

After trading above $1640 an ounce last week, the price of gold fell after hopes for another round of quantitative easing was quashed when US Federal Reserve chairman, Ben Bernanke, failed to provide any hint of further monetary easing in his testimony on Thursday. However, on Friday prices rebounded as there were talks of an imminent bailout for Spain's banking sector. Then, on Saturday, Eurozone finance ministers agreed to lend Spain up to 100 billion euros ($125 billion) in order to prevent the Spanish banking sector from collapsing. After a 2 1/2 hour conference call of the 17 European finance ministers, Madrid said the amount of the bailout would be sufficiently large to banish any doubts.

Precious Metal Silver Prices Could Soar: Silver to Respond to Europe Easing & Worldwide Economic Growth - PR Newswire - The Sacramento Bee

Precious Metal Silver Prices Could Soar: Silver to Respond to Europe Easing & Worldwide Economic Growth - PR Newswire - The Sacramento Bee

www.TheSilverPrice.info

HOLLYWOOD, Fla., June 11, 2012 -- /PRNewswire-iReach/ -- In the middle of last week, silver prices began to surge slightly as suspected.  Early last week silver was seen trading around that sweet spot, enticing investors to increase their silver portfolios and lowering the barriers to entry for first time investors.  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 and worldwide economic rebounding.

Potential Global Stimulus Measures Look to Have Positive Impact on Silver Prices - MarketWatch

Potential Global Stimulus Measures Look to Have Positive Impact on Silver Prices - MarketWatch

www.TheSilverPrice.info

NEW YORK, NY, Jun 12, 2012 (MARKETWIRE via COMTEX) -- 2012 has proven to be a tough year for both silver prices and silver mining stocks. The iShares Silver Trust ETF (SLV) has fallen over 16 percent in the last three months, while the Global X Silver Miners ETF (SIL) has dropped over 20 percent over the same period. The Paragon Report examines investing opportunities in the Silver Industry and provides equity research on the iShares Silver Trust ETF (nyse arca:SLV) and the Global X Silver Miners ETF (nyse arca:SIL).

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

www.TheSilverPrice.info

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.