How China Will Drive Silver @ $250 to $400 - Note. its a lot of more countries than China were Silver demand is very high but.... E.g.... The Chinese communist government used to forbade and ban ownership of all precious metals for the People - But now, the ban has been lifted. In fact, China just introduced silver bars for investment. And now, state-run China Central Television (CCTV) is running a campaign encouraging the population to invest in silver.
That means there are over a billion potential in China alone... new silver investors hitting the market. Most in China have learned from the their farther and grandfathers to NOT trust long term values of the governments fiats - This is especially significant when you consider the average savings rate in China is 30 to 40%.
But the flood of new Chinese silver investors isn't the only factor driving up silver prices....its high Silver demand in most countries - The increased use of silver in everything from solar cell technology to medicine is pushing up prices as well.
Read on to discover exactly why silver will make savvy investors rich in the year ahead.... and find out the one stock ex....USSIF to buy now.... to take your portfolio to new highs.
Ex...Chinese Demand For Silver
Take a second to think how much of an impact this will have on the silver market - the sheer amount of people, and at such a high rate of savings.
Then you factor in Chinese demand for things silver is need to make - cell phones, computer, batteries, silverware and jewelry. China's silver consumption already accounts for 70% of the global total of industrial use, and its middle class isn't even close to reaching its spending potential.
What's more, those aren't the only reasons analysts are predicting silver prices can reach as high as $100 this year and $250 -
This free report outlines all the reasons silver is going to continue its ride to another record. It also gives a handful of ways to invest in silver.
Demoting The Silver-Gold Adage
China's impact on the silver market isn't the only thing catching the attention of silver analysts. The silver-gold ratio tells a compelling story about the price of silver. Put simply, the ratio means how many ounces of silver it takes to buy one ounce of gold. Historically, that ratio has been about 15-to-1. Right now, that ratio is hovering around 59-to-1.
For silver to 'correct' by returning to its long term silver/gold ratio of about 15, gold at $1,000 means silver should be priced at $66 already.
You'd be hard pressed to find anyone who believes that 59-to-1 will hold up much longer because it basically means silver is cheap compared to gold, which opens the door for investors to come in at a good price, such as China. All of China.
More Pressure On Silver Prices
As the global economy expands its size and reach… as technology advances… and as more ways to buy silver becomes available… as silver supplies have dwindled… more factors began affecting the price of silver more exclusively - for better or worse. Some are:
Silver's Industrial Uses: For decades, silver has been more than a collector's item. It has dozens of uses outside the storage vault. It's used to make currency, jewelry and silverware. Silver is used to produce highly reflective, architectural mirrors. It's heavily used in the medical field as an antimicrobial - a killer of some bacteria, algae, fungi and viruses. In the labs, silver is used in photographic films and as a catalyst in chemical reactions. And more applications are arriving soon, including using silver in photovoltaic cells in solar-power technology and in rechargeable silver-zinc batteries. In fact, silver's use for industry has gone from 35% of total annual production ten years ago to more than 50% today. One source claims that figure is actually 90%.
Silver Supply/Demand: Supplies of available silver have dropped by 86% in the past two years. Commodities research firm CPM Group says the current amount of above ground refined silver has fallen from 2.2 billion ounces in 1990 to less than 1 billion today. At the same time that supply is falling, demand is rising… especially industrial demand. The pressure on silver prices will get even stronger as individual investment demand (including the whole Chinese market) goes up.
Silver Market Size: Silver is a less-active and lower-volume market than gold, which means that purchases even by individual investors can make an impact on silver prices. Better said, 100 silvers buyers purchasing the same amount as 100 gold buyers will have a bigger impact on the market. Think how much prices can spike when millions of Chinese investors flood the market with silver purchases. Now, combine that with the global return of industrial silver demand.
Gold of $6,250 and Silver at $250 to $400 - surely fiat money will flow out of treasuries into Gold and Silver -
it will become a matter of self preservation as the PM markets resume their upward trek at $50 to $150 plus per day moves.
Ben Bernanke's unbelievable and unnecessary emergency monetary policy steps have increased the money supply by over 350% just since 2008. If there wasn't continued and ongoing deflation of bubbles (real estate, construction etc.) in the US economy, inflation would be raging out of control by now, but nonetheless it is still occurring. Inflation is already at an understated 3.6%. However, all of the excess money printing and incurring of massive amounts of new government debt will eventually leave the banks and show up in the economy and rapidly escalating inflation, not only here, but in Europe as well as throughout the rest of the world, which will result in the Gold and Silver Moon Shot.
SILVER E.g....China has become the top consumer of Silver in the world. China has now become the third largest producer of mined Silver in the world, and its net imports of Silver increased by 400% in 2010 to 3,500 tons.
China used to be a Silver exporter, now it has become the largest importer of Silver.
About 70% of China's Silver demand comes primarily from the industrial sectors. However, Silver's use in jewelry and for investment is rapidly increasing as more and more people become rapidly wealthier, which will add further pressure on prices and may cause me to raise my long term target prices.... snippet by Aubie CFA, CTA, CFP, PhD http://www.us-silver.com/
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