Posted on 04/25/2011 7:08:21 AM PDT by SeekAndFind
Spot silver surged more than 5 percent to top $49 ounce on Monday, moving closer to its 1980 all-time peak lifted by a weak dollar and strong physical demand in Asia that also sent gold to a record high for a seventh consecutive session.
Spot silver was heading for its biggest daily gain in five months, hitting a 31-year high of $49.31 an ounce. It was trading at $49.07 as of 5:45 a.m. ET.
Spot gold hit a record high of $1,518.10 an ounce, before easing to $1,517.05. U.S. gold futures hit an all-time high at $1,518.6.
"Everyone is buying," said a Hong Kong-based dealer. "There is stop-loss buying, as well as a good buying interest from China."
U.S. silver futures jumped 8.2 percent to $49.82 an ounce in unusually large trading volume, just about 50 cents off its all-time peak of $50.35 hit on January 18, 1980. They stood at $49.11 as of 5:42 a.m. ET.
Silver prices have climbed nearly 60 percent this year, after jumping more than 80 percent in 2010.
That has outpaced gold's 7 percent rise and a 10-percent gain in the 19-commodity Reuters-Jefferies CRB index and drawn investors big and small to silver.
Holdings in the largest silver-backed exchange-traded fund, iShares Silver Trust, have risen by 2.4 percent this year, while holdings in SPDR Gold Trust, the world's top gold ETF, have declined by 4 percent.
Buying interest in physical silver has also jumped in India, where gold is traditionally favored.
"The rally has been great as traders are buying silver like mad," said an official at a private bank in India.
"We normally don't import silver on a regular basis, but we imported about 10 tonnes from last month. Investors are joining in the rally in India to catch on the price appreciation."
(Excerpt) Read more at reuters.com ...
But with our spending still out of control and a Republican Congress that can only restrain it by a mere $38 Billion, THERE IS NO CHOICE BUT TO PRINT MONEY IN ORDER TO BUY OUR DEBT.
Unless our government puts a stop to this, I don't see the end of the surge in Gold and Silver prices.
Just my humble opinion.
Remember the Ben Bernank is going to speak on Wednesday. More QE? Higher interest rates? No change in the interest rates?
Your humble opinion is right on the money. If there is a QE3 (or whatever they decide call it) we’re pretty much screwed. Silver/Gold will jump to unknown heights and the greenback will hit new all-time lows.
Silver and gold have been dropping fast for the last hour or two.
Silver is now trading at $46.90, but on ebay all weekend and today it is selling between $54.00-$58.00 an oz. People are are buying boat loads of silver.
Ignore history at your own peril.
A parabolic spike like this is a sign of a major top. If you bought silver at $10 or so and are holding it for future currency, you have nothing to worry about.
If you are a short term speculator in some fashion, then be careful you don’t get whipsawed.
RE: Silver and gold have been dropping fast for the last hour or two
Is that a long term trend or is the market simply taking a breather?
What about buying now and holding??
“Silver and gold have been dropping fast for the last hour or two.”
That’s typical for a Monday once the US markets open and the Asians have run the price up significantly over a holiday weekend.
Hard to say. And I wouldn’t want you taking my word for it anyway.
Just thought I’d point out that the title of the article was kinda meaningless since the 5% silver gained overnight has since been almost completely lost again in the last 2 hours or so.
Let us not forget that the surging metals prices are occuring while DEMOCRAT President OBAMA is at the helm.
The last time we saw this price action was in 1979-80 when DEMOCRAT President Jimmy Carter was at the helm.
Under Jimmy Carter silver prices soared due to the Hunt Brothers attempt to corner the market.
The current price runup in silver looks more ominous as it appears the buying is worldwide.
The correction in silver and gold may have started a couple of minutes ago.
The ten year chart of silver looks pretty impressive.
Good opportunity to buy before Silver shoots beyond $50 oz.
Maybe... But right now it’s a good bit lower than it closed end of day Thursday and still goin down.
If you’re holding to make a profit on your investment, then if it were me - no I wouldn’t invest my money right now. Not at least till it took a good dive.
If you were buying to hold as a future currency in SHTF, then personally I’d make sure my survival preps are as good as they can get. Let’s face it, in most situations the local economy will be barter if it gets seriously bad, and I don’t think silver will do you a great deal of good.
If you got excess cash after your preps, then yeah converting it to metal is a good idea, because you’ll need a store of value. Me personally I’d let it pull back and settle first, but this market is squirrelly and there’s a large cash demand for the physical metal. Still, if it were my money I’d gamble on it dropping to $25 or $30 before getting in. But that’s just me.
I had about 600 oz that I bought in the mid-90’s because I was worried about the market bubble that was forming. I sold it a couple of years later to buy stuff for preps. I’m glad I did honestly, even though that silver would be worth 30K right now. At least now I can survive and a great deal of what I bought is drastically more expensive or unobtainable.
I doubt more than 2% of the population cares about gold and silver prices
But they do care about gasoline, heating oil, wheat (bread), etc and all are global commodities that are zooming upward as the banksters at the Federal Reserve flood the world with our dollars. Obama and his economic advisors approve this policy. Numbskull Obama could care less about debt and economics, all he cares about is getting re-elected
Let’s say someone wanted to purchase some Franklin coins. According to Goldline, there is .36169 oz of silver in the coin. The current spot price is $46.34 (or thereabouts). Goldline is selling the coin at $26.17. How do I determine its current market value? If I multiply the spot buy price by .36169 oz, I come up with $16.76. Additionally, 10% of the coins is made of copper and the coin was made between 1948-63 (approximately 510M were minted). Is this a worthwhile investment? I realize that the spot price could nose dive but I am trying to get an idea of the coin’s market value at this time.
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