Silver in general is standing at a very interesting position, as it's poised to break out in the short term, while at the same time a weakening economy will play havoc with the precious metal over time.
We'll look at some myths surrounding silver in this article, as well as some of the realities inherent in silver as an investment option.
See how silver will perform during economic weakness.
Showing posts with label Investing Silver. Show all posts
Showing posts with label Investing Silver. Show all posts
Tuesday, May 7, 2013
Monday, June 25, 2012
Silver Wheaton (SLW), Miners, and Weak Banking Environment
Silver Wheaton (NYSE: SLW) is positioned to create an awesome future if the ongoing weak banking environment continues for a period of time; which is should.
This is especially true of European banks, which have provided the majority of financing for miners, and which in light of the debt crisis in Europe, are contracting their loans to the industry, providing a potential marvelous opportunity for Silver Wheaton for years into the future.
If Silver Wheaton and its leaders have the will, it's likely they could become one of the leading sources of capital for miners with silver as a by-product, or silver as the main metal being mined.
With the price of silver being under pressure in 2011, that was weakened the position of silver miners, and if that continues on, or if financing continues to be tight, Silver Wheaton would be the go to place of financing for the miners, providing a magnificent opportunity to negotiate some very favorable deals.
At this time Silver Wheaton pays a little over $4 an ounce for silver, with everything above that profit, minus limited costs.
Being a silver streaming company, Silver Wheaton has very little overhead, putting them in a strong financial position.
A strength that Silver Wheaton has over other silver competitors like iShares Silver Trust (NYSE: SLV) is that it doesn't only track the price of silver as the means of generating revenue, but also benefits from the increasing production at mines it has deals in place with.
So when mines come on line or boost production, Silver Wheaton gets a big piece of all of that.
As for risk, there is very little for Silver Wheaton in reference to costs, although there is a risk if the miners have some type of local problems which slow down or halt production.
But having a good number of clients, Silver Wheaton has sufficient protection if there are specific problems with an individual miner. It could slow down some production, and thus revenue, but a steady stream of revenue from other miners would ensure solid results.
For the short and long terms, it appears Silver Wheaton is strongly positioned for fantastic growth, with an estimated 60 percent in growth projected by 2015 by the company.
If more miners come calling for financial deals, and if bankers remain reluctant to finance them, Silver Wheaton could be setting itself up, and its investors, for significant growth for many years to come, as industrial uses of the white metal grow in demand.
This is especially true of European banks, which have provided the majority of financing for miners, and which in light of the debt crisis in Europe, are contracting their loans to the industry, providing a potential marvelous opportunity for Silver Wheaton for years into the future.
If Silver Wheaton and its leaders have the will, it's likely they could become one of the leading sources of capital for miners with silver as a by-product, or silver as the main metal being mined.
With the price of silver being under pressure in 2011, that was weakened the position of silver miners, and if that continues on, or if financing continues to be tight, Silver Wheaton would be the go to place of financing for the miners, providing a magnificent opportunity to negotiate some very favorable deals.
At this time Silver Wheaton pays a little over $4 an ounce for silver, with everything above that profit, minus limited costs.
Being a silver streaming company, Silver Wheaton has very little overhead, putting them in a strong financial position.
A strength that Silver Wheaton has over other silver competitors like iShares Silver Trust (NYSE: SLV) is that it doesn't only track the price of silver as the means of generating revenue, but also benefits from the increasing production at mines it has deals in place with.
So when mines come on line or boost production, Silver Wheaton gets a big piece of all of that.
As for risk, there is very little for Silver Wheaton in reference to costs, although there is a risk if the miners have some type of local problems which slow down or halt production.
But having a good number of clients, Silver Wheaton has sufficient protection if there are specific problems with an individual miner. It could slow down some production, and thus revenue, but a steady stream of revenue from other miners would ensure solid results.
For the short and long terms, it appears Silver Wheaton is strongly positioned for fantastic growth, with an estimated 60 percent in growth projected by 2015 by the company.
If more miners come calling for financial deals, and if bankers remain reluctant to finance them, Silver Wheaton could be setting itself up, and its investors, for significant growth for many years to come, as industrial uses of the white metal grow in demand.
Saturday, June 12, 2010
Citigroup (NYSE:C) Looking for $20 Silver
Citigroup (NYSE:C) said they are looking for silver to reach $20 an ounce sometime within the next six to twelve months, based largely on industrial demand.
Silver prices gained back most of the losses incurred last week, ending the week up 5.4 percent in the U.S., and 3.1 percent in London.
Last week silver prices plunged 6.1 percent.
Silver futures for July delivery reached $18.231 an ounce this week, increasing 93.2 cents over last Friday. The highest level for the week was $18.48 an ounce.
Silver prices gained back most of the losses incurred last week, ending the week up 5.4 percent in the U.S., and 3.1 percent in London.
Last week silver prices plunged 6.1 percent.
Silver futures for July delivery reached $18.231 an ounce this week, increasing 93.2 cents over last Friday. The highest level for the week was $18.48 an ounce.
Thursday, May 13, 2010
Silvercorp Metals (NYSE:SVM) Downgraded, Misses Estimates
Silvercorp Metals (NYSE:SVM) didn't have a good day today, as they not only missed estimates, but were downgraded from "Buy" to "Neutral" by Global Hunter Securities.
Earnings and revenue were up year over year for Silvercorp, with earnings increasing to $9.8 million, from the $1.2 million last year in the same quarter, while revenue jumped to $28.2 million, a 62 percent gain over last year.
Analysts had been looking for $31.7 million in revenue.
Earnings increased, for the most part, on higher production and rising selling prices.
Silvercorp production jumped to 4.62 million ounces for last year, a record for the company.
Earnings and revenue were up year over year for Silvercorp, with earnings increasing to $9.8 million, from the $1.2 million last year in the same quarter, while revenue jumped to $28.2 million, a 62 percent gain over last year.
Analysts had been looking for $31.7 million in revenue.
Earnings increased, for the most part, on higher production and rising selling prices.
Silvercorp production jumped to 4.62 million ounces for last year, a record for the company.
Friday, April 16, 2010
Pan American Silver (TSE:PAA) Strike Ends
Pan American Silver Peru Strike Over
After a strike by over one thousand workers at its Huaron silver mine in Peru started on April 10, Pan American Silver (TSE:PAA) had to decide whether to battle the workers or give in to their demands. That has been decided now as the strike has ended.
At issue in the strike was the amount of money paid out in the profit-sharing payment. The workers felt it was less than agreed to, and got more money for their trouble, whether it was true or not.
Pan American said originally that the strike was illegal, which means they must have believed the payment they made to the workers was in line with the contract.
Either way, they decided to pay out what was identified as a special payment of $180 per worker, which sounds like it was a shakedown rather than breaking profit-sharing agreement.
The 'special payment' is coming from a payment from an unidentified third party.
After a strike by over one thousand workers at its Huaron silver mine in Peru started on April 10, Pan American Silver (TSE:PAA) had to decide whether to battle the workers or give in to their demands. That has been decided now as the strike has ended.
At issue in the strike was the amount of money paid out in the profit-sharing payment. The workers felt it was less than agreed to, and got more money for their trouble, whether it was true or not.
Pan American said originally that the strike was illegal, which means they must have believed the payment they made to the workers was in line with the contract.
Either way, they decided to pay out what was identified as a special payment of $180 per worker, which sounds like it was a shakedown rather than breaking profit-sharing agreement.
The 'special payment' is coming from a payment from an unidentified third party.
Sunday, April 4, 2010
Silver Short Squeeze Here?
FORT LEE, N.J., April 3 /PRNewswire/ -- The National Inflation Association today issued a silver update to its http://inflation.us members:
On December 11th, 2009 NIA declared silver the best investment for the next decade. In our December 11th article, we said that it wasn't a coincidence that the very day Bear Stearns failed was the same day silver reached its multi-decade high of over $21 per ounce. We went on to say, "The reason why we believe the Federal Reserve was so eager to orchestrate a bailout of Bear Stearns, is because Bear Stearns was on the verge of being forced to cover their silver short position."
JP Morgan took over the concentrated short position in silver from Bear Stearns and gained complete control over the paper price of silver. Within weeks, JP Morgan was able to manipulate the price of silver down to below $9 per ounce. NIA believes they were able to drive the price of silver down through "naked short selling," selling paper silver that is unbacked by physical silver.
On February 5th, we witnessed another sharp decline in silver prices, which NIA described on February 7th as being "just a temporary wash out, before a huge surge in silver prices later in 2010." Since then, silver prices have rebounded by 18%. The temporary wash out that occurred on February 5th was predicted by independent metals trader Andrew Maguire, who came out this week exposing the fraud that is taking place in the paper silver market.
On February 3rd, Andrew Maguire wrote Eliud Ramirez, a senior investigator for the CFTC's Enforcement Division, giving him the "heads up" for a "manipulative event" signaled for February 5th. He warned the CFTC that JP Morgan was about to manipulate down the price of silver after the release of non-farm payroll data on February 5th. Andrew said that the takedown would happen regardless of if employment was better or worse than expected and the price of silver would be flushed to below $15 per ounce. During the next couple of days, silver was crushed from $16.17 per ounce down to a low of $14.62 per ounce.
Despite all of the evidence given by Andrew Maguire to the CFTC of gold and silver manipulation, Andrew wasn't allowed to speak at last week's CFTC hearing on limiting gold and silver positions held by banks like JP Morgan. Bill Murphy of the Gold Anti-Trust Action Committee (GATA) was allowed to speak (within a five-minute time constraint) and present some of Andrew Maguire's evidence, but right when his presentation began there was a technical failure of the live television broadcast, which was mysteriously fixed as soon as he was done speaking. Bill Murphy was scheduled for several mainstream media television interviews after the CFTC hearings, but they were all abruptly cancelled at once.
A couple of days after the CFTC meeting, Andrew Maguire and his wife were involved in a bizarre hit-and-run car accident in London where a second car coming out of a side street struck their vehicle, which resulted in a police chase using helicopters and patrol cars before the suspect was nabbed. Andrew and his wife were released from the hospital with minor injuries. (NIA does not believe in conspiracy theories but when you consider that this is a potential multi-trillion dollar fraud that could bring down the world's financial system, it really makes you think.)
The silver market provides a window into what is happening in the gold market. Because the silver market is very small and its short position is so concentrated, its price is easier to manipulate than gold, but the same manipulation is taking place in gold on a much larger but less noticeable scale. In our opinion, the CFTC is under pressure not to do anything about the manipulation because the lower gold and silver prices are, the stronger the U.S. dollar appears to be. If we saw an explosion to the upside in gold and silver prices, it would result in a complete loss of confidence in the U.S. dollar.
NIA believes the precious metals markets are currently being artificially suppressed by paper gold and silver that doesn't physically exist. At last week's CFTC hearings, Jeffrey Christian of the CPM Group admitted that banks have leveraged their physical bullion by 100 to 1. This means for every 100 ounces of paper gold/silver that trade, there could be as little as 1 ounce of physical gold/silver in the vaults backing it. However, Mr. Christian sees no problem with this because he says "it has been persistently that way for decades" and there are "any number of mechanisms allowing for cash settlements."
What Mr. Christian fails to realize is, most investors around the world holding paper gold/silver believe they own physical gold/silver. There will come a time when these investors don't want cash settlements in U.S. dollars, but they will want the physical precious metals themselves. When investors around the globe eventually call for physical delivery of their precious metals, NIA believes it will result in the biggest short squeeze in the history of all commodities.
The physical silver market is now more tight than ever before. In the first quarter of 2010, the U.S. mint sold 9,023,500 American Silver Eagles, the most since the coin debuted in 1986 and up from 8,299,000 sold in the fourth quarter of 2009. All U.S. silver mines combined are currently producing only 40 million ounces of silver annually. This means the U.S. needs to use almost all of its silver production just to keep up with the demand for American Silver Eagle coins.
Silver closed this week at a 10-week high of $17.89 per ounce and a major short squeeze to the upside could be imminent. With the spotlight now on JP Morgan, NIA believes they will be less likely to naked short silver at these levels and manipulate the price down like in February. With the mainstream media blackout, it is important for NIA members to work harder than ever to spread the word and help expose what could be the largest fraud in the history of the world.
To receive NIA's latest updates about inflation and the economy, sign-up for the free NIA newsletter at: http://inflation.us
About us:
The National Inflation Association is an organization that is dedicated to preparing Americans for hyperinflation. The NIA offers free membership at http://www.inflation.us and provides its members with articles about the economy and inflation, news stories, important charts not shown by the mainstream media; YouTube videos featuring Jim Rogers, Marc Faber, Ron Paul, Peter Schiff, and others; and profiles of gold, silver, and agriculture companies that we believe could prosper in an inflationary environment.
Contact: Gerard Adams, 1-888-99-NIA US (1888-996-4287), editor@inflation.us
SOURCE National Inflation Association
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RELATED LINKS
http://www.Inflation.us
On December 11th, 2009 NIA declared silver the best investment for the next decade. In our December 11th article, we said that it wasn't a coincidence that the very day Bear Stearns failed was the same day silver reached its multi-decade high of over $21 per ounce. We went on to say, "The reason why we believe the Federal Reserve was so eager to orchestrate a bailout of Bear Stearns, is because Bear Stearns was on the verge of being forced to cover their silver short position."
JP Morgan took over the concentrated short position in silver from Bear Stearns and gained complete control over the paper price of silver. Within weeks, JP Morgan was able to manipulate the price of silver down to below $9 per ounce. NIA believes they were able to drive the price of silver down through "naked short selling," selling paper silver that is unbacked by physical silver.
On February 5th, we witnessed another sharp decline in silver prices, which NIA described on February 7th as being "just a temporary wash out, before a huge surge in silver prices later in 2010." Since then, silver prices have rebounded by 18%. The temporary wash out that occurred on February 5th was predicted by independent metals trader Andrew Maguire, who came out this week exposing the fraud that is taking place in the paper silver market.
On February 3rd, Andrew Maguire wrote Eliud Ramirez, a senior investigator for the CFTC's Enforcement Division, giving him the "heads up" for a "manipulative event" signaled for February 5th. He warned the CFTC that JP Morgan was about to manipulate down the price of silver after the release of non-farm payroll data on February 5th. Andrew said that the takedown would happen regardless of if employment was better or worse than expected and the price of silver would be flushed to below $15 per ounce. During the next couple of days, silver was crushed from $16.17 per ounce down to a low of $14.62 per ounce.
Despite all of the evidence given by Andrew Maguire to the CFTC of gold and silver manipulation, Andrew wasn't allowed to speak at last week's CFTC hearing on limiting gold and silver positions held by banks like JP Morgan. Bill Murphy of the Gold Anti-Trust Action Committee (GATA) was allowed to speak (within a five-minute time constraint) and present some of Andrew Maguire's evidence, but right when his presentation began there was a technical failure of the live television broadcast, which was mysteriously fixed as soon as he was done speaking. Bill Murphy was scheduled for several mainstream media television interviews after the CFTC hearings, but they were all abruptly cancelled at once.
A couple of days after the CFTC meeting, Andrew Maguire and his wife were involved in a bizarre hit-and-run car accident in London where a second car coming out of a side street struck their vehicle, which resulted in a police chase using helicopters and patrol cars before the suspect was nabbed. Andrew and his wife were released from the hospital with minor injuries. (NIA does not believe in conspiracy theories but when you consider that this is a potential multi-trillion dollar fraud that could bring down the world's financial system, it really makes you think.)
The silver market provides a window into what is happening in the gold market. Because the silver market is very small and its short position is so concentrated, its price is easier to manipulate than gold, but the same manipulation is taking place in gold on a much larger but less noticeable scale. In our opinion, the CFTC is under pressure not to do anything about the manipulation because the lower gold and silver prices are, the stronger the U.S. dollar appears to be. If we saw an explosion to the upside in gold and silver prices, it would result in a complete loss of confidence in the U.S. dollar.
NIA believes the precious metals markets are currently being artificially suppressed by paper gold and silver that doesn't physically exist. At last week's CFTC hearings, Jeffrey Christian of the CPM Group admitted that banks have leveraged their physical bullion by 100 to 1. This means for every 100 ounces of paper gold/silver that trade, there could be as little as 1 ounce of physical gold/silver in the vaults backing it. However, Mr. Christian sees no problem with this because he says "it has been persistently that way for decades" and there are "any number of mechanisms allowing for cash settlements."
What Mr. Christian fails to realize is, most investors around the world holding paper gold/silver believe they own physical gold/silver. There will come a time when these investors don't want cash settlements in U.S. dollars, but they will want the physical precious metals themselves. When investors around the globe eventually call for physical delivery of their precious metals, NIA believes it will result in the biggest short squeeze in the history of all commodities.
The physical silver market is now more tight than ever before. In the first quarter of 2010, the U.S. mint sold 9,023,500 American Silver Eagles, the most since the coin debuted in 1986 and up from 8,299,000 sold in the fourth quarter of 2009. All U.S. silver mines combined are currently producing only 40 million ounces of silver annually. This means the U.S. needs to use almost all of its silver production just to keep up with the demand for American Silver Eagle coins.
Silver closed this week at a 10-week high of $17.89 per ounce and a major short squeeze to the upside could be imminent. With the spotlight now on JP Morgan, NIA believes they will be less likely to naked short silver at these levels and manipulate the price down like in February. With the mainstream media blackout, it is important for NIA members to work harder than ever to spread the word and help expose what could be the largest fraud in the history of the world.
To receive NIA's latest updates about inflation and the economy, sign-up for the free NIA newsletter at: http://inflation.us
About us:
The National Inflation Association is an organization that is dedicated to preparing Americans for hyperinflation. The NIA offers free membership at http://www.inflation.us and provides its members with articles about the economy and inflation, news stories, important charts not shown by the mainstream media; YouTube videos featuring Jim Rogers, Marc Faber, Ron Paul, Peter Schiff, and others; and profiles of gold, silver, and agriculture companies that we believe could prosper in an inflationary environment.
Contact: Gerard Adams, 1-888-99-NIA US (1888-996-4287), editor@inflation.us
SOURCE National Inflation Association
Back to top
RELATED LINKS
http://www.Inflation.us
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