-- Posted 26 August, 2005 | | Source: SilverSeek.com
Monthly Report July
Silverinstitute
Silver/Ounces in US$ |
Buy Date | Amount | Buy Price | Total (USD) | Price Today | Value Today |
November 15, 2002 | 10000/oz. | 4.54 | 100/oz. | | |
Total | 10000/oz. | 4.54 | 100/oz. | 7.00 | 70'000.00 |
Profit | | | | | 24'600.00 |
Profit (in %) | | | | | 54.0% |
OUR LONG-TERM RECOMMENDATION | | | BUY | |
OUR SHORT-TERM RECOMMENDATION | | | BUY | |
SILVER SHARES STILL OFFER AN EXCELLENT BUYING OPPORTUNITY!
1981 to 2005: The bear is dead and yet, the bull nowhere to see – apparently!
Looking at the chart below, we could conclude that silver has not moved at all, that it has remained in a horizontal channel for the past fifteen years. The fact however remains that the silver price has pushed through major resistance which now has become an important support level.
The silver price has in fact only increased by 75% since 2002 while the copper price more than doubled. But silver has strong fundamental arguments in its favour and may well suddenly come to life again.
The long-term picture of the silver price
The silver price is well-established in its up-trend which started in October 2001 and accelerated from July 2003 onward to reach a bit more than $8 by April 2004 when massive profit-taking pushed it down to the $5.50 level at which a clear buying opportunity emerged.
By fall, the silver price was back to $8 only to succumb to profit-taking once more. It fell back to the up-tend-line and another buying-opportunity was presented.
At present , the silver price is again in a consolidation phase and it may take a while before a new buy signal is flashed. Nevertheless, we seem to be getting closer to the next important buying-opportunity.
The medium-term picture of the silver price
Our favourite silver shares
(%-value changes reflect the performance since our first recommendation.)
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Fundamental Considerations: THE RISING SILVER DEMAND
Silver is unique. Its natural beauty is legendary. Its range of applications is exceptionally broad. As a precious metal, it has been a source of human adornment since the beginning of time. As a principal component of fine tableware, appropriately called silverware, it has served as an important utensil for fine dining for centuries. As a light-sensitive element, it has revolutionized preservation of memories in the form of photographic images. More recently, its unique properties comprising of anti-bacterial qualities, corrosion resistance, malleability, ductility, reflectivity and conductivity have opened new possibilities for a myriad of other industrial applications.
Supply versus Demand
Over the past ten years, supply of silver (mine production and silver scrap) has increased by 26% while demand (total fabrication) expanded only by close to 10%.
While estimated total silver bullion inventories have fallen dramatically over the past ten years, the decline will likely be a lot less spectacular as the flattening curve above also suggests.
Mine production will most likely increase more rapidly as the demand through industrial applications.
Silver reflects! The film coating on mirror backings is silver. Mirrors are used in telescopes, microscopes, spacecraft and solar panels, as well as bathrooms! Don't forget the silver transparent coating on double-pane thermal windows.
Silver conducts heat! Those silver ceramic lines fired into your car's rear window keep the window clear of frost and ice.
Silver conducts electricity! Silver is the metal of choice for switch contacts because it does not corrode. Every time you start your microwave, dishwasher, television set, car engine, etc., silver contacts complete the electrical circuit. The same thing happens when you tap the keys of your computer keyboard, adjust your car's power seats, or release the power trunk lock. Silver is there.
Silver kills bacteria! Silver chemically affects the cell membranes of bacteria, causing them to break down. Bacteria do not develop resistance to silver, as they do to many antibiotics. Silver solutions are used in burn treatments. Silver gauze packs the wounds of patients during transport to medical facilities. Silver nitrate drops are used to clean the eyes of newborns. Hikers use portable silver-based water purification systems for drinking water.
Silver rings! Silver has a pure acoustic resonance and is preferred by musicians for making high quality silver bells and musical instruments.
Silver captures images! Silver salts are the basic image capture and forming materials in photography. Every picture of your sweet little darling contains silver, as well as medical/dental x-rays and your favorite movie.
Silver is pretty! Don't forget the silver in your jewelry or traditional tableware. It's a favorite medium because it is soft and malleable, and can be shaped into any form. Silver has been used in cherished heirlooms and gifts for centuries.
Silver and Copper
Back in 2002, whether you bought silver or copper, the result would have been the same, except for the past two months. Therefore, silver may will need to do some catching up – or copper will fall back. Silver is of course a lot more volatile than copper.
The Rising Trend of Commodities
The recommendations were valid at the time of writing, viz. at
and may no longer be valid at the time of reading.
The assets of THE TIMELESS PRECIOUS METAL FUND, Malta (EU), are invested in silver shares up to 30%.
Peter Zihlmann
www.pzim.com
www.timeless-gold.com
Contact: invest@pzim.ch
+41 44 268 51 10
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Disclaimer: P. ZIHLMANN INVESTMENT MANAGEMENT AG does not accept any liability for any loss or damage whatsoever, that may directly or indirectly result from any advice, opinion, information, representation or omission, whether negligent or otherwise, contained in the trading recommendations or in any accompanying chart analyses, whether communicated by word, or message, typed or spoken by any of its employees.
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-- Posted 26 August, 2005 | |
Silver Update #16
