The Gold Report: The Washington D.C.-based Silver Institute reports that net silver demand has exceeded net silver supply each year since 2004, with a supply deficit of 113 million ounces (113 Moz) reported in 2013. Why hasn't that trend translated into dramatically higher silver prices?
Sean Rakhimov: First, I don't put much faith in these numbers. For instance, CPM Group has somewhat different numbers. Either way, silver supply and demand have been roughly in equilibrium, in my opinion, over the past decade or so. Second, silver manifests itself as a precious metal in times of crisis or uncertainty. When it's business as usual, silver acts more like a base metal and trades more on supply and demand numbers. Silver prices will respond during a crisis as its perception changes from an industrial to precious metal. That's when you will see more of what we saw in 2011 when in the space of about six months silver went up three times. Another period like that is coming.
"Excellon Resources Inc. has a handle on its deposit's cost structure and grade."
TGR: In early June we started to see stronger precious metals prices and that has carried through. Is this a trend?
SR: It is the beginning of a trend. Precious metals characteristically start going up after a prolonged decline, yet early in the reversal they rarely inspire any confidence because the last dozen or so similar moves fizzled after a 1020% move. This could be one of those. Silver is at $21 per ounce ($21/oz) now, maybe next week it will test $18/oz again. It's anybody's guess but I believe that toward the end of the year we'll probably see higher numbersmaybe substantially higher.
TGR: Is there a telltale sign that shows investors that this upturn is real? Continue reading "Sean Rakhimov: Upward Trend a Silver Investor's Friend"
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By: Tim Melvin
Imagine that, back in January, you were given an ironclad forecast of how the world and economy would shape up in the first half of 2014.
You would have known in advance that the U.S. GDP would have a negative print for the first quarter, that Ukraine would explode into violence with Russian involvement -- and that the much-touted housing recovery would begin to show signs of slowing down.
You would have known that Iraq would see sectarian violence, and that Islamists separatists would successfully attack major cities and seriously destabilize the region. You would have had information showing you that the prices of important food items like coffee, hogs and cattle would experience double-digit price surges.
Related: 5 Smart Money Managers Taking A Shine To Gold Miners
You would have foreseen the strict, new environmental regulations imposed on industry and utilities. The slowdown in retail profits and decline in consumer confidence would have been no surprise to you, because you would already be in the know about these things. Continue reading "3 Reasons To Quit Trying For The Impossible With Your Investments"
Everytime I hear about earthquakes here in the US I think of the legendary trader Jesse Livermore who was short the railroads back when San Francisco had a huge earthquake in 1906,
Jesse was the who was short the market made a fortune as the railroads crashed down and helped cause the great panic of 1907 where Jesse made some really serious money. Nothing quite like that today however, as the equity markets have been on the uptick all day. The only market that is crashing is the gold market.
The markets are never boring, nor is living on this planet.
All the best to everyone.