Seeking Alpha

Can silver's big run continue?

  • BlackRock chief investment strategist Russ Koesterich isn't buying the last month's 12% bounce in silver, attributing the move instead to the metal's typical volatility. Further, he says H1's drop in real interest rates - a boost to the metal - is unsustainable as the year goes on. "This suggests a tougher second half for precious metals, particularly for gold, which has historically had the stronger relationship with real rates.”
  • He also notes the silver-to-gold price ratio as near the historical average, suggesting silver isn't mis-priced, at least as it relates to gold.
  • ETFs: SLV, AGQ, USLV, SIVR, ZSL, SLVO, DSLV, DBS, USV, SIL, SLVP, SILJ
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Comments (17)
  • Grant Dossetto
    , contributor
    Comments (180) | Send Message
     
    The ratio is 63:1...that is not near historical norms. It is high, 50:1 sounds about right with around 25:1 being the upper bound.
    8 Jul 2014, 01:11 PM Reply Like
  • Mickey45
    , contributor
    Comments (9) | Send Message
     
    One thing Ive learned is to never listen to the talking heads on the news ..They always have a reason to say something which has something to do about them making money not us..Why would they do this u might ask well maybe they are being paid to do it by the stock which is usually the case do your own research
    8 Jul 2014, 08:16 PM Reply Like
  • abcpanther
    , contributor
    Comments (33) | Send Message
     
    I agree, Grant. Historical would put the ratio in the effort to refine and pull it out of the ground. At that level they could get 15 ounce silver vs 1 ounce of gold or 15:1. Today, we're 66:1 ... which is at "Historic" highs for that ration. This also means that silver is very bullish.

     

    So why would Blackrock make their statement? My guess. To keep people in the today's casino, which we call equities.
    8 Jul 2014, 01:29 PM Reply Like
  • Offlimits
    , contributor
    Comments (56) | Send Message
     
    Edge funds and private funds do not want you to invest on safe assets, because they will have a hard time steeling from you. That's about it.
    8 Jul 2014, 02:09 PM Reply Like
  • garrylindsay
    , contributor
    Comments (32) | Send Message
     
    Silver is on a real tear, it's the same price it was 6.... yes, 6 years ago!
    8 Jul 2014, 02:29 PM Reply Like
  • coindog
    , contributor
    Comments (658) | Send Message
     
    and it been up and down a good bunch since. and even before that. I made a lot of money/extra silver on those swings.
    8 Jul 2014, 03:37 PM Reply Like
  • The Aiki Trader
    , contributor
    Comments (68) | Send Message
     
    This gold/silver ratio chart is telling me the gold to silver ratio may be topping our here and head back down. Since around 1985 the author is correct. We are at the historical ratio of around 65+- average. Of course this is only 30 years of history following on the heels of the US currency no longer being tied to gold in 1971. http://bit.ly/NOhtJG
    8 Jul 2014, 02:52 PM Reply Like
  • apberusdisvet
    , contributor
    Comments (2931) | Send Message
     
    The author has an obvious agenda. The key fact of the GSR is that actual mining production is between 7-9:1, and is likely to go even lower at the current suppressed prices that do not cover all costs to produce, especially as the planet runs out of easily mineable silver. Further, it is an absolute fact that there is far more gold in vaults than silver. So you have to ask yourself which metal in the future will be more valuable, given the strategic industrial uses of silver.
    9 Jul 2014, 10:32 AM Reply Like
  • lutherwmitchell
    , contributor
    Comments (34) | Send Message
     
    does anyone think the large increase in national debt should be a factor??
    8 Jul 2014, 07:31 PM Reply Like
  • Mickey45
    , contributor
    Comments (9) | Send Message
     
    The biggest factor is the American Dollar .When China @Russia sign there gas deal don`t no if they have yet or not , was not inked in U.S.A but Chinese Currency i believe .If the U.S.A dollar goes south look for GLD,SLV to go North
    20 Jul 2014, 06:42 AM Reply Like
  • Offlimits
    , contributor
    Comments (56) | Send Message
     
    Gold and silver have been attacked since they bounced from their latest lows. They have withstood all attacks, for the time being, which is a sign of strength. This is probably due to the sentiment of many that inflation is growing quite rapidly and the economy is not performing: which results in the interest in precious metals.
    8 Jul 2014, 09:30 PM Reply Like
  • Fanebrb
    , contributor
    Comments (615) | Send Message
     
    OMgosh... silver is the only investment that canbe relied on... 30+$ w/inflation.
    9 Jul 2014, 01:16 AM Reply Like
  • Fanebrb
    , contributor
    Comments (615) | Send Message
     
    >>> Luther... What nat'l debt is/are you referring to... the 19 trillion or 27 trillion... huh? There isa 28 trillion diff you know.
    9 Jul 2014, 01:24 AM Reply Like
  • kingofsilver
    , contributor
    Comments (78) | Send Message
     
    I wonder what big run the authors headline refers to. Must be a joke.
    9 Jul 2014, 07:31 AM Reply Like
  • floortrader
    , contributor
    Comments (22) | Send Message
     
    Gee ,people get all carried away with stuff like national debt and 12 % raise in price of silver and world news events ,that's all nice for people who write newsletters . I just watch the range between $19.00 and $22.50 and we have been bouncing around between these numbers .We been here for months ,my play is buy it around $19.00 or if we test lower than 19 ,just pick up more with new money . The key is 3 closes above $22.50 not the first move above because the pro's are hunting for stops and suckers with close stops . Silver is a buy on any fast break but also hold money on the side if we go down over a period of days and then look to add a little each dollar down but don't load the boat and hope she floats ,that can be a mistake .
    9 Jul 2014, 11:47 AM Reply Like
  • G Weaver
    , contributor
    Comments (24) | Send Message
     
    The demand for silver may increase because there are many more reasons for it's use than other precious metals such as gold. It also appears that supply may not meet with demand, so the logical result is a higher price.
    16 Jul 2014, 09:11 PM Reply Like
  • lutherwmitchell
    , contributor
    Comments (34) | Send Message
     
    I have noticed more silver in the jewelry trade
    17 Jul 2014, 08:35 AM Reply Like
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