Username
Password
SelectReserve CacheTv Open an Account
SelectReserve CacheTv Live Charts
Request More information on on gold, silver, coin, currency and learn about the value of mint and precious metals. We provide information on silver bullion and buying gold
Get on Board with RRSP & TFSA  - Invest in Physical Gold & Silver through your Cache Metals Account
Cache Metals Store - Browse through our Fabricated Bullion Products
CacheMetals.com As Seen and Heard on AM640 and other Toronto Radio Stations
Click to Subscribe to Cache Metals Newsletter
Win a 1 OZ Gold MAple Leaf from Cache Metals.com
Cache Metals Delivers the latest in business and metals market news. Cachemetals.com
 INDEX  >   Gold's 'ugly sister' gets a second look
Published by Market Watch: May. 14, 2010 Myra P . Saefong

 

| More

TOKYO (MarketWatch) -- Investors are finally giving gold's "ugly sister" a second look.

Silver's gains in recent months have significantly outpaced gold's, with silver climbing around 30% since early February, compared with gold's nearly 17% price gain.

And some analysts say silver hasn't yet caught the attention it deserves.

Investors "are not taking notice yet it looks like the world is far more focusing on gold," said Gijsbert Groenewegen, a managing partner at Silver Arrow Capital Management.

That's fair to say given that silver's more than two-year high above $19 pales in comparison to gold's highest-ever settlement price of more than $1,243 an ounce in New York for its most-active futures contract. Groenewegen pointed out that the average gold-silver ratio is 52, but the ratio is currently around 63, "so silver has some catching up to do."

"While silver has outperformed gold in recent months, it has massively underperformed gold over the long term," said Mark O'Byrne, a director at GoldCore, an international bullion dealer.

Gold's nearly 50% above its nominal high in 1980 of $850, while silver remains at less than 60% of its 1980 high of around $50, he said.

"Investors continue to view silver as gold's ugly sister," he said.

There has been no talk of pension funds, high net worth individuals, or large hedge funds investing in silver as of yet, O'Byrne said. "This will change in the coming months, and this is when silver is likely to really move up in price."

Playing follow the leader

For now, in the world of precious metals, gold remains the king.

"Silver is 'poor man's gold' and will ride on the coattails of gold, but gold is the true hedge against the demise of fiat currency," said Mark Leibovit, chief market strategist for VRTrader.com.

Even so, it's silver that's poised to garner the attention in the months and years to come.

"Silver will continue to follow gold moves in the short term and medium term but in the long term, silver will move on its own," said Chintan Karnani, chief analyst at Insignia Consultants in New Delhi.

Silver's "quality as money" is already starting to move into the picture as investment demand in the iShares Silver Trust exchange-traded fund /quotes/comstock/13*!slv/quotes/nls/slv (SLV 18.04, +0.18, +1.01%) alone jumped 200 metric tons over the last seven days, said Julian Phillips, an editor at SilverForecaster.com. As of Thursday, silver in the trust totaled 9,191.37 metric tons and the trust's average one-year total returns, as of March 31, stands at 32.81%. See the ETF's latest data.

"Silver's price will be driven by physical demand, not by the futures market, so ETFs like the Silver Trust will be good indicators of that demand," Phillips said.

Meeting the need

Demand itself is certainly looking up.

"The U.S. Mint and Canadian Mint continue to experience very high demand for silver eagles and silver maple leafs and premiums for these coins are beginning to move up again," said O'Byrne.

And "even though silver production is rising, investment demand, alongside industrial demand, is growing quickly, eliminating what remains of lack of demand from photography," Phillips said.

He also pointed out that silver is consumed and not recovered from these sources.

So "until newly-mined silver grows in large volumes, we believe that silver demand will outpace production, thus pointing to a better future for silver than for gold," said Phillips.

Silver on the run

Many analysts also agree that silver's run is built to last.

Phillips said it's possible for silver to hit $29 "on this run alone."

There's also potential feedstock for the rally on the horizon.

Prosecutors' criminal investigation into J.P. Morgan Chase & Co. /quotes/comstock/13*!jpm/quotes/nls/jpm (JPM 37.57, +0.24, +0.64%) includes the company's activities in the silver market, "where commentators have for years been accusing them of market manipulation," said Phillips. J.P. Morgan has said that it hasn't received any notice of a criminal probe.

"If these commentators are right, then J.P. Morgan has a massive short position which will have to be closed," he said. "If that has to be done with physical silver, the silver price will leap to our target level if not higher and quickly."

Against that backdrop, the upside for silver could "ultimately be to $100, though short-term I would be grateful to see it above its $22 2008 high," said VRTrader.com's Leibovit.

Either way, "the waiting may be over and silver's strength is likely to last for two or three years," O'Byrne said. But silver investors need to have patience because when silver prices fall, "it takes a few months to start a big and speedy bull run," said Insignia Consultants' Karnani, noting that whenever gold and silver prices fall together, silver has a tendency of falling more than gold.

"Silver has more uses than gold and is much more fundamentally bullish than gold," he said. However, gold has a safe haven appeal which silver does not have, he said.

Still, "silver is a highly undervalued commodity and whenever the valuation catches up with fundamentals, silver prices will zoom," he said.

Karnani voiced confidence that silver will test $24 in 2010 and $30 in 2011.

"For a long-term investor (3-4 years), silver is an attractive investment even at the current prices," he said.

Myra P. Saefong is MarketWatch's assistant global markets editor, based in Tokyo.

 
© 2010 MarketWatch .com  Article Source
CALL 1-416-916-6660 and book an appointment with a Cache Metals Precious Metals Market specialists
© 2011 Cache Metals Inc.   |   International Bullion Wholesalers
Tel: 416.916.6660    Toll Free: 1.877.916.6670    Fax: 416.916.6702   [email protected]
ICTAICANN-Accredited Registrars Powered by ActiveTvNetworks     
As with all investments, the price of precious metals changes rapidly, and as such should be considered volatile. Upon entering the metals market, the risk of loss is solely that of the client. Only individuals who are capable of sustaining a capital loss should consider purchasing precious metals. Acquisitions in precious metals which are financed are considered high risk.
Active TV Networks - ATVN & Active TV powered this website. Visit Madcap Media Inc or madcapinc.com and atvn for your niche web development needs, including CMS.
gold, silver, coin, currency, value, coins, mint, precious, buy gold, stock price, metals, gold price, gold silver, bullion, maple leaf, gold coins, silver dollar, gold prices, prices gold, gold and silver, gold coin, gold rate, gold bullion, gold live, bullion gold, silver coins, price of gold, silver price, buying gold, live price, gold bar, current price, silver bullion, bullion coins, bullion silver, bullion bars, spot gold, gold bars, gold spot, market price, silver prices, silver coin, sell gold, gold today, krugerrand, gold market, precious metals, metals precious, gold chart, price in gold, silver bars, precious metal, gold coins bullion, gold bullion coins, silver dollars, coin collecting, rare coins, gold rates, gold ounce, gold current, buy silver, silver bullion coins, silver coins bullion, gold value, silver bar, gold stock, gold kitco, silver spot, gold investment, platinum price, selling gold, gold etf, ounce price, gold price today, spot gold price, gold spot price, gold price india, gold price spot, gold trading, gold stocks, current gold price, copper metal, numismatics, troy ounce, gold price ounce, today gold prices, gold price in india, gold dealers, gold investing, gold index, gold price per ounce, gold price gram, krugerrands, gold quotes, gold futures, gold invest, gold charts, gold price chart, live gold prices,live gold price, bullion bar,how to buy gold, gold quote, krugerrand gold, buy gold coins, gold spot prices, spot gold prices, current gold prices, platinum prices, silver spot price, base metals, buy bullion, us gold coins, gold comex, gold price market, current price of gold, price for gold, the price of gold, price of gold today, gold and silver prices, price of gold per ounce, gold funds, gold market price, bullion coin, e bullion, buying silver, buy gold bullion, gold price history, bullion dealers, bullion market, gold bullion buy, gold bullion bar, silver investment, bullion price, silver gold price, gold coin prices, today's gold price, gold price oz, todays gold price, precious gold, iron metals, bullion direct, silver bullion bar, silver bar bullion, gold markets, kitco price, gold coin price, prices of gold, gold and price The History of Metals,Bullion - A better Alternative,Investments,Silver Bullion,Buy Silver Bullion,Bullion, Gold Information,Gold Investments, How To Invest In Gold , Precious Metal Investments, American Dollar, U.S. Economy, Information On American Economy, Investments In Gold And Silver, Investing In Silver, Dollar Devaluation, Devaluation Of The U.S. Dollar, Dollar Investments, Information About Gold, Global Economy, Global Economy History, Gold Bullion Buyers, Gold Bullion Sellers, Investing Information, Investment Kits, Gold Investors, Silver Investments, Silver Prices, Gold Prices, Gold And Silver Prices, Precious Metal Prices, Precious Metal Traiding, Investment Roll Papers, Investment Planning Papers, Precious Metals, Metals Price History, Daily Silver, Daily Gold, Daily Platinum, Register, Bullion Coins, Bullion Dealers, Bullion Investing, Bullion Investing Firms, Bullion Investments, Bullion Sales, Bullion Trading Sites, Buy And Sell Gold Bullion, Buy Bullion, Buy Gold Bullion Now, Buy Gold Bullion Online, Buy Gold Coin Bullion, Buying Gold Bullion, Buy Precious Metals, Current Gold Bullion Prices, Gold And Silver Bullion Coins, Gold And Silver Bullion Dealers, Gold And Silver Bullion Prices, Gold And Silver Coin Bullion, Gold And Silver Coins, Gold and Silver Investments, Gold Bullion Brokers, Gold Bullion Buyers,  Gold Bullion Sellers, Gold Bullion Stocks, Gold Coin Investing, Gold Coin Investments, Gold Info, Gold Information, Gold Investing, Gold Investments Kits, Gold Investments, Gold Investments Online, Gold Investors, Gold Market Prices, Gold Market Quotes, Gold Prices Information, Good Gold Investments, How To Invest In Gold, How To Invest In Silver, Invest In Bullion, Investing In Gold And Silver, Investing In Gold Bullion, Investing In Gold Coins, Investing In Silver, Investing In Silver Bullion, Investing In Silver Bullion Coins, Invest In Gold, Invest In Gold Bullion, Invest In Silver, Online Gold Investing, Investments In Gold, Precious Metal Dealers, Precious Metal Exchange, Precious Metal Investing, Precious Metal Market Quotes, Precious Metal Investments, Purchase Of Gold Bullion, Safe Gold Investments, Silver Bullion Coin, Silver Bullion Coin Investing, Silver Bullion Dealers, Silver Bullion Online, Silver Bullion Quotes, Silver Bullion Sales, Silver Coin Investing,Silver Bullion Dealers, Silver Coin Prices, Silver Bullion Market Information, Silver Bullion Online, Silver Bullion Price Guide, Silver Info, Silver Information, Silver Investment Kits, Silver Investments, Silver Investors, Silver Market Quotes, Silver Market Prices, Trading Gold, Trading Silver, USA Bullion Rates, Gold Bullion, US Gold Bullion, US Gold Bullion Coins, US Silver Bullion Coin, Where To Buy Gold Bullion, Why Invest In Silver Bullion
Cache Metals Inc - Home PageCacheMetals Statements Cache Metals Inc - About the Canadian Bullion Wholesaler Cache Metals Inc - Bullion Information on Gold Silver Platinum Cache Metals Inc - Register for an account today and start saving money Cache Metals Inc - Freqently Asked Questions about Bullions Cache Metals Inc - Contact Page