Silver is a precious metal that is the best conductor of electricity known to man. Silver, for thousands of years, was used a currency, even before gold. Currently, there are numerous new uses for silver being found in biotechnology, solar energy and in technology in general.
Yesterday, the Dow Jones Industrial Average fell 317 points, while the NASDAQ Composite Index fell 93 points—respective losses of about two percent per index. This morning, stock market futures are down again.
As a reader of Profit Confidential, this “rout” we are now in should come as no surprise. I have been writing for months how overpriced the stock market has become, how the stock market has become one big bubble thanks to the easy money policies of the Federal Reserve, and how the bubble would burst.
Yesterday, those who have been riding the stock market’s coattails higher and higher got the first taste of what is being called a “correction” by the mainstream media. But like I just said, to me, this is a stock market bubble that is bursting—very different than a correction. For months, historically proven stock market indicators (many of which I have written about in these pages) have been flashing red…but very few investors paid any attention to them.
The Dow Jones is now down for 2014. Yes, seven months into the year and big-cap stocks have gone nowhere. So far in 2014, investors would have done better owning gold and silver or U.S. Treasuries.
I have been predicting this will be a down year for the stock market and I’m keeping with that forecast. After five consecutive positive years for the stock market, the bounce from the 2008 market low of 6,440 on the Dow Jones could finally be over.
Dear reader, as elementary as it sounds, interest rates are the catalyst for all this.
After falling for 30 years, a time in … Read More
Is silver presenting an even greater investment opportunity than gold bullion?
It’s been well documented in these pages that demand for gold bullion is increasing and supply is declining due to lower prices. The silver market is going through the exact same thing.
Last year, the Indian government decided to curb demand for gold bullion in that country by increasing the duty on gold imports. This resulted in a significant decline in gold bullion imports. But what went unsaid was that silver demand skyrocketed as gold bullion demand fell. In 2013, silver imports into India almost tripled to 5,478 tonnes. (Source: Reuters, March 4, 2014.)
Demand for silver is increasing here in the U.S. as well. The table below shows demand for Silver Eagle coins sold at the U.S. Mint in the first four months of each year since 2011.
U.S. MINT SALES OF SILVER EAGLE COINS
Data source: U.S. Mint web site, last accessed May 1, 2014
From the table, you can easily see that the demand for silver coins in the first four months of 2013 and 2014 was greater than it was in 2011 and 2012. 2011 was the year silver prices were reaching $50.00 an ounce. In 2012, silver prices were relatively flat. In 2013 and this year, as silver prices declined, we saw more buying of silver coins; silver prices are bringing more buyers.
On the supply side, there are constraints in the silver … Read More
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