SILVER-Silver-Spot-Price-stock-market-chart

As I have written in these pages before, I expect silver prices to outperform gold prices in the years ahead. That opinion hasn’t changed.

As gold prices started their flight upwards back in 2002, silver prices followed a similar pattern. Below is a price chart of monthly silver prices since 2001—when gold was trading just below $300.00 an ounce.

 

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Submitted by Michael Lombardi, for Profit Confidential

SILVER-Silver-Spot-Price-stock-market-chart

Chart courtesy of www.StockCharts.com

Silver prices traded as low as $4.00 an ounce in late 2001 and climbed to highs of almost $50.00 an ounce in 2011. While silver prices have retraced a bit, the metal is still up more than 675% from its lows in 2001. Meanwhile, gold prices have risen by about 466%; from $300.00 to around $1,700 an ounce today.

I see a future where silver will become the focus of investors, while gold will be bought by the central banks. We are starting to see that happen at accelerated pace now. You have read extensive articles in Profit Confidential documenting the gold buying of many central banks. And investors are already rushing to buy silver.

To give you some perspective, the U.S. Mint has halted its sales of 2013 American Eagle silver coins, because it ran out of them. Yes, the U.S. Mint ran out of 2013 silver coins! Sales for 2013 silver Eagle coins surpassed five million ounces. (Source: Reuters, January 17, 2013.)

In addition, investors are turning to alternative ways of buying silver. The biggest Exchange Traded Fund (ETF), called the I Shares Silver Trust (NYSE/SLV), saw its holdings of silver rise to the highest level in five years. The fund has purchased $579 million worth of silver to bring its total holdings to 10,735 tons.

According to data collected by Bloomberg and Barclays plc, the demand for silver investments is 19,114 tons through exchange-traded funds globally, which equates to about nine months of supply from mines.

This sudden investor interest in silver shouldn’t be surprising to my readers. As central banks print more fiat currency, accordingly, silver and gold prices will rise.

With the economies of many countries suffering, money printing will be the “savior” of choice for central banks, and because of that, I expect to see silver prices increase significantly over the next couple of years.

Michael’s Personal Notes:

The jobs market in the U.S. economy has attracted attention, as the employment rate has fallen marginally below eight percent for the first time under the Obama Administration. Some are even going as far as saying the U.S. economy is witnessing economic growth.

I have a different view. I believe the jobs market is fundamentally broken and, hands down, the biggest hurdle to economic growth in the U.S. economy. The truth of the matter is that the jobs are being created in industries where wages are low and there are millions of Americans who are still unemployed.

Now, after roaring into a new year, some U.S. companies are facing hardships as their sales outside the U.S. come under pressure. We have already seen companies like Morgan Stanley (NYSE/MS) and Citigroup, Inc. (NYSE/C) make cuts to their domestic workforces. Companies like American Express Company (NYSE/AXP) are following in their footsteps.

Amex, as it is better known, is planning to cut 8.5% of jobs, or 5,400 jobs, from its workforce. (Source: Reuters, January 10, 2013.)

Sadly, it’s not only the private sector witnessing job cuts and poor jobs market conditions; local governments are doing the same. In December, 11,000 jobs from public schools were slashed in the U.S.—this marked the fourth straight month of local government cutting jobs. (Source: Reuters, January 4, 2013.)

Longer term, since August of 2008, local governments in the U.S. economy have cut about 300,000 teaching and other school jobs.

Could the U.S. jobs market rebound be nothing but a hoax? If you take out all those low-paying jobs being created, the jobs market situation is indeed frightening. You can’t have a real economic recovery when job creation is concentrated in low paying jobs like retail and service industry jobs. U.S. consumer spending accounts for 70% of U.S. gross domestic product (GDP). At the rate we are going, low-paying jobs will soon account for 70% of all U.S. jobs!

The longer the jobs market stays shaky, the longer it will take the U.S. economy to see economic growth. If people don’t have well-paying jobs, or they are earning less than they did before, they will spend less, as savings can only last for so long. Hence, you can see why I’m so suspicious about the so-called economy recovery more and more people are talking about—something I simply don’t believe exists.

Where the Market Stands; Where it’s Headed:

The higher the stock market moves in the next couple of weeks, the harder it will fall. I don’t believe corporate earnings in 2013 will justify rising stock prices. This is why I see 2013 as a turning point for the stock market rally that started in March of 2009.

What He Said:

“As a reader, you’re aware I’m not a Greenspan fan. In the years that lie ahead, I believe we (and our children) may pay dearly for the debt bubble Greenspan created during his tenure as head of the U.S. Federal Reserve.” Michael Lombardi in Profit Confidential, March 20, 2006. Michael started talking about and predicting the financial catastrophe we began experiencing in 2008 long before anyone else.

 

Originally posted at: http://www.profitconfidential.com/gold-investments/silvers-up-675-since-2001-heres-why-it-will-go-higher/

 

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  1. Bix Weir on Dr. Dave Janda’s Operation Freedom
    http://www.davejanda.com/operation_freedom/
     
    Lot’s and lot’s going on in the Silver world today and for the rest of the week with COMEX closing out the month.
     
    ALERT: Have fun putting together the SILVER puzzle as it relates to Obama’s new Treasury Secretary Nominee, Jack Lew.He’s a filthy silvermarket rigging shill!
     
    Here are the pieces of the manipulation puzzle: Clinton Administration (Special Assistant), Robert Rubin(Gold/Silver Leasing), Alan Greenspan(Computer Market Rigging), CitiBank(Special Investment Unit hired JPM Silver Traders), Bill Daley(took over as Chief of Staff from JPM Swat Team leader Daley), US Natural Resources (newly invented Deputy Secretary of State for Management and Resources)…aka IN CHARGE OF THE US HIDDEN GOLD MINES!
     
    Not hard to see where Jack Lew is in league with the MARKET RIGGERS!
     
    Jack Lew will have the SILVER rigging reigns…SO good luck you filthy cheater!

     
     

    More on the COMEX action later this week.
     
    May the Road you choose be the Right Road.
     
    Bix Weir
     
    We shall see what happens. 

  2. Hi Net ranger-
    I asked someone on this site yesterday if Obama (and his administration) could somehow control metal prices and stop the prices from going much higher than they are now to continue to deceive the public about how much money they are printing.  
    Are you saying they can?  I’m a stay at home mom with no financial background, so most of the concepts on this site are over my head (although I enjoy reading them).  Thanks for any insight (for dummies) you can provide.

    • There are probably a lot of new comers that come to this site.  I am fairly new.  I have learned a lot and made some mistakes.  However, the most important thing I have learned is that silver is very volitile.  Do not invest money that you cannot afford to leave invested in silver for 2 or 3 years.  And, buy the dips if at all possible.  And, silver is not a get rich quick scheme.  Do not put much importance on those articles that say silver will make you rich.  Also, if you invest and your silver value goes underwater, you may have to wait for several years to break even on your investment.  That happens when you do not buy the dips.  We buy silver to protect us from inflation, not to get rich.  This attitude will save you grief.

    • Silver is not an investment. It is money. You are saving your money in silver. Buy on the dips or when silver sentiment is very negative and store in a safe place. The US$ could go to zero but silver can’t. You should be buying silver to protect yourself from currency debasement. You are not buying silver to make a profit. However, becuase silver is extremely undervalued, developing silver shortages due to increasing demand will guarantee a rise in price in real terms. As Max Keiser has said recently the big banks such as JPMorgan are currently hoarding commodities. They clearly know that a currency re-set is coming from worthless non-backed fiat to some sort of commodity backed currency.

    • Celia - 
       
      Kudos for having an open mind, a desire to learn, and the courage to ask questions. Hopefully the comments provided by the other posters have helped. If you’re hungry for more info on the price of gold and silver being suppressed, perhaps the best and easiest way is to watch a couple of interviews by a couple of guys named Chris Powell and Bill Murphy. They head the Gold Anti-Trust Action Committee (GATA), established to call attention to the fact that the big banks (JP Morgan, HSBC, others) are manipulating the prices of gold and silver downward. Here’s a link to an interview where they cover a lot of great points on this topic:  http://www.youtube.com/watch?v=omVd1dY2010 
       
      The Doc posts GATA’s work every so often, they’re a great source for this topic. 
       
      If you’re more curious on the topic of money in general, and the Federal Reserve like some of the other comments mentioned, I think you would really be fascinated by a book called Dishonest Money by Joseph Plummer. It is really a summary of G. Edward Griffin’s much more in-depth classic, The Creature From Jekyll Island. That one is much longer, but incredibly fascinating. If you only read one book on money the rest of your life, you’ll thank yourself if you make it one of those two. 
       
      Don’t want to drown you in information, but I think we’re all just glad to see more and more people choosing to take the time like you have to educate themselves on topics that public schools purposely didn’t. These are also vital topics to educate your kids on… it’s amazing that the public schools will teach kids sex and drug “education” when they’re 10, but we can graduate college without learning to balance a checkbook. 

    • Great advice, Pollokeeper.  Those who expect to get rich quick, or even slowly for that matter via buying silver, are doomed to failure unless something really bizarre happens.  You are exactly right that silver (and gold too) are inflation fighters and will preserve our buying power.  Again, this is not one of those day to day things but something that takes place over the years.  I think of my stack as financial insurance against a US dollar / economic collapse.  Considering the inept management that our central bank provides and the even more inept contribution by the Gov, this seems prudent to me.  I would not be 100% in ANY investment but devoting 10-20% of one’s wealth to precious metals is not a bad thing.

    • @ Celia..Stack what you can afford. Politicians who are on the bankers payroll can do whatever they like. It is up to the people to get the information out. So more and more purchase silver & gold. Purchase a few coins a month and it is better than the alternative. 

  3. Celia,
    No one is a dummy here. The ones who are blind are those who actually think paper money will never lose its value. Obama is nothing more than a puppet on a string. He controls nothing. He can’t even control his wife and kids. He just does what he is told to do just like George Bush. The root of our country’s problems are seated within the halls of the Federal Reserve. A privately held COMPANY owned by a few elite families who actually control where the gold and silver price will go. The only thing that can stop this madness is not a million average Americans buying silver, it is the eliminating the Federal Reserve from continuing to print counterfeit money. As long as the people continue to put up with this scam nothing will change. Hope you enjoy this site.

    • “No one is a dummy here. The ones who are blind are those who actually think paper money will never lose its value.”
       
      Agree 100%!  Anyone who comes to this site is showing at least some interest in learning what is and is not going on.  A lot of this will be things that the media in this country refuses to cover.  Fortunately, there are alternative media web sites that do cover a lot of these things.
       
      To our new members…

      Paper money is not a good store of value.  At least, not for the long term.  Inflation is built into our money because it is created with debt attached to it by the Federal Reserve, which is a private corporation and a banking cartel.  It is no more “federal” than is the Federal Express package delivery service.  We know that paper money does not retain value because we have all lived through times that saw the purchasing power of paper money shrink.  If we put $50,000 into a retirement fund and hold it for 20-30 years, we will have more dollars if we have invested it in things that earn interest or that have stock price increases.  What tends to sneak up on us, though, is just how much our money will buy.  It does no good to have our money double if prices triple!  This is especially so because our “gains” will then be taxed, whether there is an actual gain in buying power or not.
       
      What we need to do is to watch the prices of things that are real and not based on what the herd thinks it is worth.  Most commodities fit into this group.  Things like gold and silver, oil and gas, food crops, timber, and clothing fibers tend to hold their value.  Do not be confused by the fact that all of these prices are moving up and down all the time.  The markets for them are auctions, so buyer bidding and availability are what mostly sets the price ranges.  That said, we can choose a standard against which all other things can be measured.  Traditionally, that one thing has been gold with silver going along for the ride.  Seen in this light, the price of gold isn’t so much changing as are the prices of everything else.
       
      Fiat currencies are fairly volatile, with their relative prices constantly in motion depending on what dumb things have been done by the countries that issue them plus any national and international news events that affect those countries.  Typically, when the dollar rises, gold will “drop” in price because it takes fewer dollars of greater value to buy gold.  The reverse also happens when the dollar drops in price with gold then rising.  This is the typical movement that we see but the situation can be more complicated than this with many factors affecting these prices.  Occasionally, the dollar and gold will move higher or lower at the same time.  While unusual, it does happen sometimes.
       
      Enjoy the site and feel completely free to ask questions.  Whatever you want to know will be known by someone here.  If not, I am sure that we will look it up and get back to you on it.  :-)
       

    • “The only thing that can stop this madness is not a million average Americans buying silver, it is the eliminating the Federal Reserve from continuing to print counterfeit money.”
       
      Buying Silver is actually the best way to eliminate the Federal Reserve from continuing to print counterfeit money…  Gold and Silver prices are a sign of the health and confidence level in fiat paper money.  The higher the prices, the more people will see that something is wrong with the paper money system.  And that is why they make every effort to keep Gold and Silver prices in check.  But they don’t have total control and are able to only slow down the prices from going up too fast.  But people buying physical Silver is the surest way to drive prices up–not immediately, but in time.  And higher prices means more people noticing, and more people noticing means more people buying.
       
      This is a good example of how one person can make a difference, because every 1 oz of physical Silver bought and taken out of the market represents 100 ounces or more of paper silver that gets removed from the market as well.  In a fractional reserve system, the actual physical metal is still necessary for the system to function.  Remove the physical metal, and the fractional system would cease to exist.  100 X 0 = 0.

    • Plebian, individuals buying silver may remove a small portion of the metal off the for sale counter, but it does not eliminate the banksters from raising the fractional trading from 100 to 1 to 1,000 to 1. I remember silver selling for $2.00/oz in 1960s. With 40 years of manipulation and individual buying, the price rose in 2000-2001 to $4.00/oz. It took 35 years to double your money. Do we not manipulate the price of silver also today to make our point? Since 2001, silver is up 675%? Since 1980, silver is down -40%??? Which one is right? THEY BOTH ARE!!! With QE to infinity why would they stop there? Why not fractional trading to infinity?? Either way, the dam eventually breaks, but neither you nor I can break the dam by pouring in our own personal cup of water!!!

    • Thanks for all the great comments. I got into metals after reading “crash proof” by peter schiff.
      I’ll think of them as hedges against inflation (really bought them just in case I need to buy food for my kids someday if the dollar crashes). I’ll follow this site carefully in the next few years.

    • FYI.  Gonzalo Lira is also the person who thinks there is no Gold or Silver price manipulation, because as soon as two or more people know the secret, everyone else will know…  His reasoning is very flawed and does not at all represent the historical facts of widespread conspiracies and deceptions promulgated by man.
       
      How many people knew about the LIBOR conspiracy and manipulation?… And still it took all this time for the truth to be discovered, published, and accepted as fact…

    • Plebian – I just thought it was an interesting article.  It seems the main point he makes is Gold is the next sovereign crisis and right now people have lost trust in gold due to all the paper, rehypo and tungsten salted gold.  It all goes back to what the Doc says: If you can’t hold then you don’t own it. 
       
      All of these players are waking up they own paper or possibly tungsten salted metals instead of the real deal.  There’s a distrust of gold assets until all of this is figured out then the phyzzzz will rocket up to new highs. 

    • This Gonzalo Lira guy should stick to topics he actually knows something about.   Like someone else noted, his premises and logic are very flawed.   He makes statements like “gold has no value except as a hedge” and that there is no conspiracy because people will find out.   BS!!!   911 was done right in front of our faces and it was so obvious that anyone who looks can see.   They don’t even have to hide anything when they can do it in plain sight.   I thought his viewpoints about gold and paper money were so off the mark I might never bother to reading him again.   It really bothers me when people who don’t know jack-all about precious metals write about them as if they are an authority.    Thumbs down.

  4. @Ed_B, not only is paper money not a good store of value, but apparently, neither are coins.  In the latest (Feb 4) issue of ‘Time Magazine,’ there is an article about the debate over eliminating the US penny.
    This article points out that in 1913 – the year the Federal Reserve was created – the lowly penny purchased 25 times as much as it will buy today.

    • Agreed.  ALL US money is now worth a lot less than it was back then.  Just look at the buying power of a dollar.  A $1 bank note and a $1 silver coin were worth exactly the same in 1910.  These days a $1 silver coin is worth $35-40… sometimes more if it’s a rare date or in especially good condition.  As 1/100th of a dollar, even a penny had some buying power back then.  These days, not so much… change is about all a penny is worth anymore… unless we have LOTS of them.  ;-)
       

  5. Please no more BIX WEIR  references.!!!!!
    He belongs in a corn flake box with the Alex Jones.
    Wasn’t BIX  the flake that claimed the banksters/Fed  turned off the hft algorithms back in 2010 and that silver was now headed in short order to the moon.
    How can anyone take this newsletter clown seriously.

  6. I pray for Whirled Peas   I want silver to go Pair a Bollocks   
                                                                                       

  7. Anecdotal, from my modest junk collection.
    Currency, the latest times is was coined in silver, shows us how inflation works, for metal prices.
    1876 silver 5 Italian lire coin: 25 grams.
    1958 500 lire : less than half the size. 99% devaluation over 82 years.
    It may not directly reflect the value of the silver itself, but it’s an indication. That 5 Lire coin is worth close to €20 in silver now (well 2001). €20 apparently equalled 38,700 Lire. That’s gotta be a rough monetary story.
    Most European countries of which I collect silver coins show much less silver currency inflation, but still, 5 Belgian Francs went from 1873 to the same size coin in 1951, denomated as 250 Bfr (-98% in 78 years).

    France did much better: 1875 5 FFr to 1977 50Ffr (90% devaluation over a century), but that is a bit of a special case I think, the latter minted closer to its silvers value.
    Netherlands, 1849-1874 2 1/2 Guilders were very similar to 1970 10 Guilders and 1987 50 Guilders. 95% devalued in a bit over a century. The 50 Guilders coin is actually still not “in the money”. Worth less in silver than when the Euro was introduced. The person that sold me his stash lost money, even over 25 years of owning them… Probably due to the 1980 peak in silver, they were a bit generous with the denomination.

  8. All the economic recovery indicators I see used are ones tied to the upper wage earners. Housing sales/starts are up on high end houses as an example. Rich get richer as they screw the rest of us.

    • It is possible to become wealthy WITHOUT screwing anyone.  Just like not all poor people are angels, not all rich people are devils.

  9. Did anyone know this?  Silver is being used in clothing and underwear as an anti-radiation shield…  From Amazon.com:
     
    “World Health Organization (WHO) Press Release on May 31, 2011: Cell phone use can increase possible cancer risk. This product is specially designed for reducing Radio Frequency (RF) radiation such as cell phone, wireless devices, microwave oven. Now you can give your child less RF radiation exposure right from the start. Metals are typical conductive materials used for RF shielding. OurSure products made with high-tech metal fiber or nano- silver fiber blend.”  $179.98/ea.
     
    “Fashionable maternity camisole with radiation shield. Ultimate 360 degree protecting for the baby from electromagnetic fields radiations. Specially designed for expecting moms who use cell phones and microwave ovens on daily basis. Can wear as an inner layer or underneath professional dresses. Fit all 3 trimesters. Ultra strong shielding capability: unique cutting-edge high-tech blend shielding 100 percent of cell phone signals and other daily electromagnetic fields radiations up to 60DB. Can wear as an inner layer or underneath professional dresses, especially fit for expecting moms who need to wear business/business casual dresses at work. 360 degree coverage for all 3 trimesters: 36″ at chest; 49.6″ at belly and 24″ long. Fitted design. S/M maternity sizes. Silky smooth, soft, and elastic nylon/silver blend with classic lace trim offers versatile wear and feminine charm. Breathable and comfortable jersey construction keeps cool. One year warranty. Frequency range: 500 Hz to 12 GHz.”  $135.95/ea.

  10. @Ed_B: In response to your remark, “It is possible to become wealthy WITHOUT screwing anyone….,” I would comment that the problem is that “The System” is inherently designed to screw little people. It takes great effort to create wealth without doing that. In fact, if the perps in charge see someone doing that, they will nail them.
     

     
     

    • “The System” is the product of the efforts of millions of people and it is designed to benefit those who created it AND those who know how to use it.  Mankind has been doing this since we came down from the trees.  Fact is, my Precious, anyone can use the system but they have to know how it works and then Just Do It.  I did it and I am not a terribly unusual person.  I used 4 “secrets” passed down to me by my parents and grand parents… work hard, save religiously, invest wisely, and spend carefully.  Investing wisely was the part that helped the most.  
       
      It would be a lot more difficult to save one’s way to wealth, thanks to inflation.  Thanks to the US stock market, however, the money I was able to save got multiplied by about 5 times.  Yes, it is more difficult now than it was in the 1980s and 1990s but it is still possible to make money by investing.  It must be because I am still doing it.  I dunno… maybe I have a different definition of “wealth” than others do?  Could be.  For me, wealth means that I am independent of an employer, can afford to buy what I need, have a comfortable lifestyle, and get a few goodies from time to time.  No, this is not BIG money in terms of multi-millions but it is all I need.  Cheers.
       

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