The Premier Silver Resource Website
Visit GoldSeek.com
Visit GoldReview.com
Visit UraniumSeek.com

- CLICK HERE TO VISIT THE NEW SILVERSEEK.COM -
Live Spot Silver
Navigation
Silver Market Articles
Silver Discussions at the Forum
Silver Company Links
Silver Market Updates
Silver & Gold Headlines
Silver Stock News
Silver Equity Quotes
Silver & Precious Metals Quotes







 
Silver Zoom Ignored

By: Todd Stein & Steven McIntyre



-- Posted 2 March, 2006 | |

Courtesy of www.texashedge.com

 

So after a quarter of a century, silver finally returned to double-digits.  While we arenít fans of following day-to-day moves, the recent zoom past the $10/oz mark is noteworthy.  It seems that the precious metals community is anticipating the launch of the silver ETF Ė so perhaps this is what is causing the grey dog to bark.  Maybe thatís the case, but we certainly donít think that abnormal amounts bullion are being gobbled up by Barclays in anticipation of the ETFís launch.  Nor do we think that the public is suddenly hoarding silver.

 

What is interesting to us is that the mainstream media and average investor have no idea what is going on.  CNBC has a ticker in the morning that includes some commodity prices, but silver remains absent.  Web sites such as MSN and Yahoo spit out headlines about Google, retail sales, and oil Ė it is only on rare occasion that gold is mentioned and that is when the price breaks $400/oz or $500/oz.  Even the commodities sections of major financial web sites seem to ignore silver.  For example, we can find nothing about the recent strike at Penoles, the second largest mining company in Mexico.  Compare this to a hypothetical strike at Exxon, which would make top headlines.

 

A little more than twenty six years ago, when the silver market was being cornered, the general public started to wake up.  At the very top, there were news stories about average people taking their silverware in to be melted.  While we are not anticipating a repeat of early 1980, it is logical to think that the bull market will not end until we see the public paying attention to what is going on.

 

The combination of miner unrest in Mexico, increasingly radical leaders being elected in Latin America, and the silver ETF is adding more fuel to the already bullish fire of silver supply/demand.  As with any asset that has had a huge run in a short period of time, a meaningful correction could occur at any moment to shake out the weak hands and momentum players, but we think that continued annual supply deficits of silver will not go unnoticed by the mainstream investing public for long.  Oh, and we havenít even mentioned the ticking time bomb that is the U.S. Dollar and how its looming decline will almost certainly add a great deal of investment demand to gold and silver at a time when silver supply and inventories are very limited.

 

March 3, 2006

Todd Stein & Steven McIntyre

Texas Hedge Report


-- Posted 2 March, 2006 | |



Article Archives

SilverSeek.com is presented to you by:

© 2003 - 2011
SilverSeek.com, Silver Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of SilverSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on SilverSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Disclaimer

The views contained here may not represent the views of SilverSeek.com, its affiliates or advertisers. SilverSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of SilverSeek.com, is strictly prohibited. In no event shall SilverSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.