The mining stocks will continue to outperform in 2011,
but by a much larger margin than last year,
and are still relatively cheap compared to bullion.
Remember, the mining stocks were in a bear market
from the collapse of Bre-X in 1997 to the collapse
of Lehman Brothers in 2008.
After Lehman, even the best quality mining stocks
were unbelievably cheap.
It was a capitulation low, where emotion prevailed over logic,
which is how all bear markets end.
This new bull market will drive the mining shares
to what will probably be unbelievable heights
when we look back a few years from now.
by James Turk
BG: Silver was up 81.9% in 2010, but is still below its 1980
nominal high.
What's your outlook for silver in 2011?
Rick Rule: The near-term outlook for silver is very bullish,
as a consequence of physical supply shortages.
Longer term could be problematic as a consequence of Indian
dishoarding, an event last seen in earnest in 1997.
James Turk: I expect silver to reach $50 in Q1 2011.
It may then take a breather, but eventually -
and probably later in 2011 - silver will climb above $50.
John Hathaway: More volatility than gold.
Charles Oliver: In the earth's crust, the ratio of silver to gold is 17:1.
For most of the last 650 years (except the last 100)
the monetary exchange rate was also around 17:1.
In fact, when the United States was on a bi-metallic
reserve standard, the U.S. government mandated
"The Coinage Act of 1834," putting
the gold/silver ratio at 16:1.
In 2010, the ratio moved from around 60 to below 50.
I expect this trend to continue in 2011 and think
the metal could trade up to and beyond $50 in the
not-too-distant future.
Adrian Ash: Silver's primary use is industrial,
rather than as a store of wealth like gold.
So it should be more vulnerable to the economic cycle
(see the post-Lehman price collapse), and you could
argue it's simply tracking the huge rally in base metal
and energy prices.
But looking at that 1980 high -
forced by the Hunt brothers' speculative corner, rather than
a jump in use -
I think something else is going on, and silver is being
remonetized by private wealth in the same way gold has been
remonetized since hitting "trinket" prices in the late 1990s.
A much smaller and tighter market than gold, silver is both
more attractive and responsive to sudden inflows of cash.
As with gold, silver's volatility fell in 2010, but it was
more than twice the average level (daily basis) of
the last four decades.
Price-wise, another year like 2010 would see the $50 peak
taken out.
The biggest surprise is that the mainstream press hasn't
stoked the idea of a "silver bubble" like it has done
for gold since 2009.
Ian McAvity: If gold runs above $2,000,
I expect the silver/gold ratio to reach the 36:1 level,
which would mean a price somewhere between $55 and $66.
I view that ratio as a material driver of the silver price,
trading off its long monetary metal history, apart
from its attractive supply/demand profile.
The 1980 spike to $50 was a very brief spike that isn't
really a meaningful measuring point, in my view.
The monthly average London Fix for January 1980 was $39.27,
and gold's monthly average peak was $675.31;
those are more realistic prior peak levels to measure against.
Ross Norman: After the 2010 rally, it might seem churlish
to expect much more in 2011 for silver.
Early 2011 profit taking has seen silver decline more than
most assets, underlining the strong speculative element in
the recent price run, and this also confers some weakness
to its case.
However, the investment community has taken silver to heart,
and contrary to its modestly attractive fundamentals,
the market prices are likely to overperform again.
Unlike in 2010, we expect silver's price action to conform
more closely to that of gold - firmer,
but a little more rational.
Our outlook in 2011 for silver:
Average $37; high $44; low $27.
VERY CONSERVATIVE AVERAGE WAY TO LOW smile
BG: What's your best advice for precious metal investors in 2011?
Rick Rule: Be prepared for the most volatile market of your life,
and use that volatility to your best advantage.
James Turk: It is the same advice I have been giving
for more than a decade; continue accumulating the precious
metals, and if you are inclined to take the investment risk,
the mining stocks as well.
We need to recognize one salient fact:
national currencies are being destroyed
and their purchasing power eroded
by misdirected government policy.
Consequently, gold and silver are safe havens
and the best way to protect your wealth.
John Hathaway: Have at least 10% of your liquid -
assets in precious metals and related mining stocks.
Keep your bullion outside the U.S. A good way to do so is
through Gold Bullion International, which can be accessed
through their website.
Unless you want to spend a lot of time researching the gold
mining industry, consider investing in a well-managed
precious metals mutual fund.
There are a number, but I am partial to the Tocqueville Gold
Fund, one of the top performers last year.
Charles Oliver: All the fundamentals -
excessive government debt, high budget deficits, runaway
healthcare costs, growing Social Security payments,
demographic trends - lead to one conclusion:
Governments are bankrupt and are going to debase -
the currencies via money printing, quantitative easing,
off-balance-sheet transactions, and whatever other tricks
they can pull off.
The bull market in gold is alive and well and has a
heck of a lot further to go. Buy it.
Adrian Ash: Next to overtrading, the biggest profit killer
in gold this last decade has been to trust clever hedge
funds trying to beat the metal.
Sure, the best mining stock funds have delivered fantastic
returns, but they struggled to outperform gold in 2010,
and there's no certainty that will continue.
But if you're right to buy gold for defense, then it's best
to simply buy and hold until the prime drivers -
abysmal monetary and fiscal policy across the West -
are reversed.
Oh, and of course, be sure to visit BullionVault for a
free gram of gold, too!
Ian McAvity: For individual investors, don't go crazy with
leverage or portfolio concentration.
No matter how much of a gold bug you are, keep in mind we're
in a period where the mistakes (QE2 is one of them)
will compound the second half of the ongoing
financial disaster that started in 2007.
Ross Norman: For followers of cycles, 2011 looks like the year
that the Kondratieff Winter begins to bite -
a period normally associated with debt repudiation,
trade wars, and firm commodity prices.
A winter that puts Europe into hibernation,
and the smart money acquires a protective coat.
This is to say, buy gold, including the leveraged 2:1 ETFs.
[These world-class experts are right to bank on gold and silver -
because the U.S. dollar keeps losing more and more of its value.
Watch this eye-opening video on how China and Russia
are plotting to dump the dollar in the near term…
why you should be worried… and what to do about it.]
Yes Sir its all dudilidu run for Ag & Au
Great Panther Silver Reports Annual Net Profit Of $5 Million
http://www.greatpanther.com/s/NewsReleases.asp?ReportID=447563&_Type=News-Releases&_Title=Great-Panther-Silver-Reports-Annual-Net-Profit-Of-5-Million
dd....GPL Silver bargain play -
http://www.greatpanther.com
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=60994902
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=61099052
but by a much larger margin than last year,
and are still relatively cheap compared to bullion.
Remember, the mining stocks were in a bear market
from the collapse of Bre-X in 1997 to the collapse
of Lehman Brothers in 2008.
After Lehman, even the best quality mining stocks
were unbelievably cheap.
It was a capitulation low, where emotion prevailed over logic,
which is how all bear markets end.
This new bull market will drive the mining shares
to what will probably be unbelievable heights
when we look back a few years from now.
by James Turk
BG: Silver was up 81.9% in 2010, but is still below its 1980
nominal high.
What's your outlook for silver in 2011?
Rick Rule: The near-term outlook for silver is very bullish,
as a consequence of physical supply shortages.
Longer term could be problematic as a consequence of Indian
dishoarding, an event last seen in earnest in 1997.
James Turk: I expect silver to reach $50 in Q1 2011.
It may then take a breather, but eventually -
and probably later in 2011 - silver will climb above $50.
John Hathaway: More volatility than gold.
Charles Oliver: In the earth's crust, the ratio of silver to gold is 17:1.
For most of the last 650 years (except the last 100)
the monetary exchange rate was also around 17:1.
In fact, when the United States was on a bi-metallic
reserve standard, the U.S. government mandated
"The Coinage Act of 1834," putting
the gold/silver ratio at 16:1.
In 2010, the ratio moved from around 60 to below 50.
I expect this trend to continue in 2011 and think
the metal could trade up to and beyond $50 in the
not-too-distant future.
Adrian Ash: Silver's primary use is industrial,
rather than as a store of wealth like gold.
So it should be more vulnerable to the economic cycle
(see the post-Lehman price collapse), and you could
argue it's simply tracking the huge rally in base metal
and energy prices.
But looking at that 1980 high -
forced by the Hunt brothers' speculative corner, rather than
a jump in use -
I think something else is going on, and silver is being
remonetized by private wealth in the same way gold has been
remonetized since hitting "trinket" prices in the late 1990s.
A much smaller and tighter market than gold, silver is both
more attractive and responsive to sudden inflows of cash.
As with gold, silver's volatility fell in 2010, but it was
more than twice the average level (daily basis) of
the last four decades.
Price-wise, another year like 2010 would see the $50 peak
taken out.
The biggest surprise is that the mainstream press hasn't
stoked the idea of a "silver bubble" like it has done
for gold since 2009.
Ian McAvity: If gold runs above $2,000,
I expect the silver/gold ratio to reach the 36:1 level,
which would mean a price somewhere between $55 and $66.
I view that ratio as a material driver of the silver price,
trading off its long monetary metal history, apart
from its attractive supply/demand profile.
The 1980 spike to $50 was a very brief spike that isn't
really a meaningful measuring point, in my view.
The monthly average London Fix for January 1980 was $39.27,
and gold's monthly average peak was $675.31;
those are more realistic prior peak levels to measure against.
Ross Norman: After the 2010 rally, it might seem churlish
to expect much more in 2011 for silver.
Early 2011 profit taking has seen silver decline more than
most assets, underlining the strong speculative element in
the recent price run, and this also confers some weakness
to its case.
However, the investment community has taken silver to heart,
and contrary to its modestly attractive fundamentals,
the market prices are likely to overperform again.
Unlike in 2010, we expect silver's price action to conform
more closely to that of gold - firmer,
but a little more rational.
Our outlook in 2011 for silver:
Average $37; high $44; low $27.
VERY CONSERVATIVE AVERAGE WAY TO LOW smile
BG: What's your best advice for precious metal investors in 2011?
Rick Rule: Be prepared for the most volatile market of your life,
and use that volatility to your best advantage.
James Turk: It is the same advice I have been giving
for more than a decade; continue accumulating the precious
metals, and if you are inclined to take the investment risk,
the mining stocks as well.
We need to recognize one salient fact:
national currencies are being destroyed
and their purchasing power eroded
by misdirected government policy.
Consequently, gold and silver are safe havens
and the best way to protect your wealth.
John Hathaway: Have at least 10% of your liquid -
assets in precious metals and related mining stocks.
Keep your bullion outside the U.S. A good way to do so is
through Gold Bullion International, which can be accessed
through their website.
Unless you want to spend a lot of time researching the gold
mining industry, consider investing in a well-managed
precious metals mutual fund.
There are a number, but I am partial to the Tocqueville Gold
Fund, one of the top performers last year.
Charles Oliver: All the fundamentals -
excessive government debt, high budget deficits, runaway
healthcare costs, growing Social Security payments,
demographic trends - lead to one conclusion:
Governments are bankrupt and are going to debase -
the currencies via money printing, quantitative easing,
off-balance-sheet transactions, and whatever other tricks
they can pull off.
The bull market in gold is alive and well and has a
heck of a lot further to go. Buy it.
Adrian Ash: Next to overtrading, the biggest profit killer
in gold this last decade has been to trust clever hedge
funds trying to beat the metal.
Sure, the best mining stock funds have delivered fantastic
returns, but they struggled to outperform gold in 2010,
and there's no certainty that will continue.
But if you're right to buy gold for defense, then it's best
to simply buy and hold until the prime drivers -
abysmal monetary and fiscal policy across the West -
are reversed.
Oh, and of course, be sure to visit BullionVault for a
free gram of gold, too!
Ian McAvity: For individual investors, don't go crazy with
leverage or portfolio concentration.
No matter how much of a gold bug you are, keep in mind we're
in a period where the mistakes (QE2 is one of them)
will compound the second half of the ongoing
financial disaster that started in 2007.
Ross Norman: For followers of cycles, 2011 looks like the year
that the Kondratieff Winter begins to bite -
a period normally associated with debt repudiation,
trade wars, and firm commodity prices.
A winter that puts Europe into hibernation,
and the smart money acquires a protective coat.
This is to say, buy gold, including the leveraged 2:1 ETFs.
[These world-class experts are right to bank on gold and silver -
because the U.S. dollar keeps losing more and more of its value.
Watch this eye-opening video on how China and Russia
are plotting to dump the dollar in the near term…
why you should be worried… and what to do about it.]
Yes Sir its all dudilidu run for Ag & Au
Great Panther Silver Reports Annual Net Profit Of $5 Million
http://www.greatpanther.com/s/NewsReleases.asp?ReportID=447563&_Type=News-Releases&_Title=Great-Panther-Silver-Reports-Annual-Net-Profit-Of-5-Million
dd....GPL Silver bargain play -
http://www.greatpanther.com
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=60994902
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=61099052
My opinions are my own and and DD I post should be confirmed as unbiased
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