Monday, May 5, 2014

Heraeus Weekly Market Report

1kg Silver Bars .9999 Fine
In the course of the reporting period silver was the “biggest loser” of all precious metals and saw a low of 18.82 $/oz on Thursday, hence falling below the mark of 19 $/oz given very low liquidity. The last time the price traded at these levels was in the beginning of 2014. However, the metal once again jumped over the mark of 19 $/oz. Since silver suffered more significantlosses than gold, the gold-silver ratio climbed above 67, which corresponds to a level last seen in August 2010. It is therefore not surprising that we have seen increased industrial demand due to lower prices. We assume that the industrial demand will at least support the price. This week, the focus lies on the eurozone’s retail sales, the U.S. Redbook (both Tuesday) as well as theECB meeting (Thursday).  (Read more)


SILVER, The Best Investment On The Planet!

Minted Silver Bullion Coins .9999 Fine
What is the first principle of investing? BUY low, SELL high. Since the high in 1980 of $50/oz, silver is now the cheapest thing on the planet, trading below $20/oz. Ask yourself this simple question; Do you know of ANYTHING that is lower in price since 1980? Not food, not energy, not real estate, not technology, not the stock market  and surely not ANY other precious metal or base metal for that matter. So what does that tell us? There is some strange inefficiency in the silver market that will eventually work itself out. And when it does, silver will explode to the upside.
For silver to keep pace with the other precious metals using 1980's high compared to today, silver has to trade at about $80/oz, and it's now trading at about $20/oz. That's 4 times your money or 300% return on investment. Not bad for a tangible investment with a long track performing as honest money.  BK