Monday, February 21, 2011

This time, the precious metal's investor-inspired rise has a silver lining



Robin Bromby, The Australian, Feb 21, 2011 12:00AM

  • From:The AustraliFebruary 21, 2011 12:00ARobin Bromby, The Australian, Feb 21, 2011 12:00A



  • SWISS bank UBS has upgraded its one-month forecast for silver from $US25.50 an ounce to $US35/oz.
    Duh, as we would say -- if we weren't more refined.
    The white metal hit a 31-year record on Friday, reaching $US32.66/oz during the day. This surge is all the more impressive because the previous record in 1979 was due to the Hunt Brothers' infamous attempt to corner the silver market. This time it's investment demand.
    Silver, along with tin (of which more below) has long been a Pure Speculation hobbyhorse. Now they have begun to run...
    There is a soaring demand for silver coins. In January, the US Mint sold 6.4 million ounces of American Eagle silver coins, up 78 per cent from January last year.
    For the smaller retail investor, it represents cheaper security than gold. Given the Middle East situation, plus the debasement of paper money, such prudence seems warranted.
    read more @ ORIGINAL SOURCE
    2010 Silver American Eagle - West Point Mint - Investment Grade Silver Bullion

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