Silver stinks like Perpoop! Whatcha been doing playing in the sewer?
On Mar 4, 3:18 pm, silver <[email protected]> wrote: > Yeah! > On Mar 2, 9:34 am, xi <[email protected]> wrote: > > > > > My comment: I do not recommend them for people who bets on short term, > > of course. I do not know how they will behave in the short term. > > However, they have no option but to raise in the long term. > > > These news are intereting to catch the overall sentiment. That is why > > I post it. > > > Peace and best wishes. > > > Xi > > > March 2 (Bloomberg) -- Silver’s biggest discount to gold in 13 years > > has investors betting on the best annual return for silver since the > > Hunt brothers’ bid to corner the market in 1979. > > > Money managers are buying precious metals as a refuge from the 47 > > percent drop in the Standard & Poor’s 500 Index in the past year and > > growing concerns that Treasuries will fall as the U.S. government > > pledges $9.7 trillion to revive the economy. While gold will rise 25 > > percent this year, silver may jump 58 percent to $18 an ounce, said > > Philip Klapwijk, chairman of London-based precious metals research > > company GFMS Ltd. > > > “Silver will have a nice catch-up rally,” said Peter Sorrentino, who > > helps manage $15.5 billion at Huntington Asset Advisors in Cincinnati. > > “There’s a flight to precious metals as a storehouse of wealth. Silver > > got left behind and it’s been closing in quickly but there’s still a > > performance gap.” Huntington has about 7 percent of its assets in > > silver and 3 percent in gold, which is trading $80 an ounce below its > > record. > > > Gains would benefit Fresnillo Plc, the world’s biggest silver > > producer, Hochschild Mining Plc of Lima and Vancouver- based Pan > > American Silver Corp. Export revenue would climb in Peru and Mexico, > > the largest silver-mining nations. Eastman Kodak Co. faces higher > > costs for photographic materials. > > > The last time silver did better than gold was in 2006. So far this > > year, commodities, as measured by the Standard & Poor’s GSCI Index of > > 24 contracts, fell 3.7 percent, adding to the 43 percent plunge in > > 2008, the worst loss since the gauge was introduced in 1971. > > > ‘Isn’t Flying Yet’ > > > Silver for immediate delivery tumbled 35 percent in the past year to > > $13.29 an ounce in London. Gold outperformed in the past 12 months, > > declining 3.2 percent to $952.58 an ounce. > > > That made gold more expensive relative to silver. One ounce of gold > > now buys 72 ounces of silver, up from an average 58 ounces in the past > > two years. The ratio reached a high of 84.39 in October, the most > > since March 1995, according to data compiled by Bloomberg. > > > “Silver’s woken up recently, but it isn’t flying yet,” said Chip > > Hanlon, president of Delta Global Advisors Inc. in Huntington Beach, > > California, which manages $1 billion. “As gold goes higher, it gets > > psychologically harder to pay for gold. So people turn to silver.” He > > expects silver to reach $20. > > > Investors prefer precious metals to almost all other investments after > > more than $1.2 trillion of writedowns and losses at the world’s > > biggest financial companies sent the global economy into a recession. > > > Losses Everywhere > > > The S&P 500 Index is off to its worst start to a year on record. Oil > > dropped 70 percent from its record high in July and traded at $43.65 a > > barrel in New York today. Treasuries, which returned 14 percent last > > year as investors sought the safety of government debt, are down 3.6 > > percent this year, according to Merrill Lynch & Co. bond indexes. > > > Precious metals are also improving on concern U.S. President Barack > > Obama’s $3.94 trillion spending plan will spark inflation with a $1.75 > > trillion deficit that will lead to a surge in sales of government > > bonds. > > > Prices of Treasuries show traders are increasing bets for accelerating > > inflation. The difference between yields on 10-year notes and Treasury > > Inflation Protected Securities, which reflects the outlook for the > > consumer price index, widened to 99 basis points on March 2 from 9 > > basis points on Dec. 31. A basis point is 0.01 percentage point. > > > ‘Poor Man’s Gold’ > > > U.S. gross domestic product contracted at a 6.2 percent annual pace in > > the fourth quarter, faster than the 3.8 percent previously estimated > > and the most since 1982, the Commerce Department said Feb. 27. The > > unemployment rate rose to 7.6 percent in January, the highest since > > 1992, according to government figures. > > > “Silver is poor man’s gold, and there’s a lot more poor men than there > > used to be,” said Doug Hepworth, director of research in New York at > > Gresham Investment Management LLC. “Gold and silver are the only > > commodities that can overdo it in this environment.” > > > Silver jumped to $50 an ounce in early 1980 from $6 at the start of > > 1979 after Nelson and William Hunt of Dallas hoarded the metal. They > > were convicted in 1988 of conspiracy for attempting to manipulate > > prices and were forced to pay $130 million in fines. > > > Billionaire investor Warren Buffett’s investment company Berkshire > > Hathaway Inc. said in February 1998 it purchased 129.7 million ounces > > of silver. Buffett bought most of the silver for less than $6 an ounce > > starting in 1997, and sold it soon after, he said in May 2006. “We did > > make a few dollars,” Buffett said at the time. > > > Higher Costs > > > Peru produced 112 million ounces of silver in 2007 and Mexico 99 > > million ounces, taking their share of world output to 32 percent, > > according to the Silver Institute in Washington. A $1 increase in > > silver raises costs for Rochester, New York-based Kodak by $15 million > > to $20 million, Chief Financial Officer Frank Sklarsky said on a July > > 31 conference call. > > > While investor demand may drive silver to $18 an ounce this year, the > > returns won’t surpass gold, said Robin Bhar, an analyst at Credit > > Agricole SA’s Calyon unit in London. When investors sell silver, it > > “literally collapses” because of fewer participants in the market, he > > said. > > > Silver is also more vulnerable to the outlook for the economy, because > > industrial consumption including electronics, batteries and soldering > > made up 54 percent of demand in 2007, according to the Silver > > Institute. > > > Investor Demand > > > Investor demand through exchange-traded funds will climb 52 percent > > for silver this year as government sales fall 32 percent and mine > > production stays little changed, Morgan Stanley analyst Hussein > > Allidina in New York wrote in a Feb. 25 report. > > > Assets in the Barclays Plc IShares Silver Trust, the biggest exchange- > > traded fund for silver, increased 20 percent this year to a record > > 8,180.46 metric tons. Hedge funds and other large speculators > > increased their net-long positions, or bets New York silver futures > > will gain, to 25,207 contracts this year, up 27 percent from 19,795 in > > the week ended Dec. 30, according to the Commodity Futures Trading > > Commission. > > > “If enormous doom and gloom overwhelms financial markets, if you see > > investors are incredibly bearish and the Dow trading at 5,000, silver > > could get as high as $24,” said Jeff Christian, managing director of > > CPM Group in New York. The Dow Jones Industrial Average ended last > > week at 7,062.93, down almost 20 percent this year.- Hide quoted text - > > - Show quoted text - --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "World-thread" group. 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