Daily Gains Letter

silver prices

Silver a More Profitable Investment Than Gold This Year?

By for Daily Gains Letter | Sep 9, 2013


Gold bullion gets a lot of attention in the financial media and economists talk about it regularly. Sadly, another precious metal, silver, isn’t usually a topic of discussion. This metal moves in line with gold bullion, and for investors, it can serve as an alternative to owning the shiny yellow metal.

When gold bullion prices started to tumble in late April and then declined even further in June, silver prices did the same. Please look at the chart below of silver and gold prices. The golden line represents the spot price of one ounce of gold bullion, and the red and green line represents silver prices per ounce.

Just like gold found support at the $1,175 area, silver prices found support at around the $19.00 level. Since then, they have been on the rise, having roughly increased more than 23%; gold prices are up about 18%.

Where are silver prices headed next?

Looking at it percentage-wise, silver has the ability to outperform gold prices.

Silver Chart
Chart courtesy of www.StockCharts.com

To give you some idea about what I mean, consider this: for gold prices to go up 50% from the current level of around $1,400, they will have to increase $700.00; to get there, it can take a long time and a lot of buying. Now, for silver to increase 50%, from the current level of around $23.50, it will have to go up by $11.75 to $35.25. This sounds attainable because the silver prices have seen that level; for gold bullion, $2,100 would be in uncharted territory.

Here’s why I think silver has the potential to increase.

The demand for silver … Read More

Bull or Bear, Here’s How to Make Money with Silver

By for Daily Gains Letter | Apr 23, 2013

Bull or Bear, Here’s How to Make Money with Silver

Do silver prices have any room to run up, or has the metal lost its shine? This question is getting a lot of traction these days among investors, as the price of the gray metal has declined significantly since the beginning of this year—more specifically, since the recent drop in prices in April.

In April of 2011, silver prices hit a record high and reached almost $50.00 an ounce. In 2012, the metal traded in a sideways channel, from $27.00 to $35.00. Take a look at the long-term chart of silver prices below:

Chart courtesy of www.StockCharts.com

Historically, since the bull run in silver prices began—in the midst of 2001, when it traded close to $4.00—there have been sharp corrections. In 2008, silver prices fell from trading above $21.00 to $9.00 per ounce; this was before the financial crisis started to really unfold. Similarly, in 2006, silver prices dipped more than 30%, dropping from $15.00 to below $10.00 per ounce. Going back even further, in 2004, silver prices plummeted from trading well above $8.00 to below $5.50. (All these periods are circled in the chart above.)

In all these instances, it took silver more than a year to recover and reach a high.

Keeping all this in mind, the bulls are saying that as long as the global economy remains treacherous, governments continue to spend, and central banks around the world keep printing money; then just like gold, silver prices will soar higher, as well. The bulls argue that the global economy is still fragile: China is slowing down, the U.S. is witnessing dismal growth, and the eurozone is still … Read More