Till now, market analysts have been going ga-ga over the rise and rise of gold prices but silver has been shining better than gold in 2009 and this trend is set to continue in 2010 also.
Driven by demand from auto sector for silver-zinc batteries which are used in ‘smart automobiles’ and an array of portable electronic devices, the silver’s shining story will continue in the coming year also.
Silver ready (.999 fineness) prices are hovering around Rs 27,850 per kg in the Mumbai bullion market.
Demand for silver in the coming year is expected to rebound to normal levels in 2010 as the emergence of key new markets for silver would help to boost prices further.
Also, re-stocking of inventories for more of silver’s traditional uses will be a powerful demand driver in the near-term.
Silver prices are mainly driven by the fact that traditional industrial end-users of silver, such as the global electronics industry have in recent weeks begun to replenish severely depleted inventories.
During the financial crisis, silver inventories had run down sharply and it may take approximately six-months to fully rebuild the inventories to normal levels, Singh said.
An important factor to understand in the case of silver is that demand from the industrial sector tends to be quite inelastic. This means that buyers have few options and have to pay at prevailing prices.
Showing posts with label demand. Show all posts
Showing posts with label demand. Show all posts
Monday, 21 December 2009
Sunday, 12 July 2009
Gold demand surges as production hits 84-year low
The United States is immersed in exploding debt. The U.S. Federal Debt is now more than $10.2 trillion… and the number is growing by over $1 million every minute. This debt is a significant part of the inflationary tsunami that is sending the dollar into a steady downward spiral.
When the dollar is weak, which it has been in recent years, gold goes up.
And as the government pours over $8.5 trillion dollars of liquidity into the market and it filters down, there could be inflation of the type we have not seen since the early 80’s – and once that happens… gold could rally past $1,000… past $2,000… even soaring past $6,000 an ounce.
Remember… in the 80’s when inflation was 18%? Well if that happens again, some experts believe gold could soar as high as $6,000 an ounce.
And just when inflation was starting to surge – from 1975 to 1980 – precious metal stocks soared – Bankeno Mines from $1.25 to $430, handing early-in investors a 34,300% gain, Azure Resources from $.93 to $440 – a 47,211% gain and Wharf Resources from $.40 to $560 – an incredible 139,900% gain.
That five-year period was one of the biggest financial opportunities for investors in history.
And now we’re at the same crossroads... with inflation rising... the dollar falling... and the world in turmoil... and you’ve been handed another once-in-a-lifetime opportunity to invest in gold stocks which are poised to make double-, triple-, even quadruple- digit gains.
Just listen to what two of the brightest and most knowledgeable moneymen think about the weakening dollar:
Warren Buffett advises you to “build an ark” to protect against the fallout from the falling U.S. dollar.
Professor Kenneth Rogoff, a former head researcher at the International Monetary Fund, warns of a potential 40%+ drop in the greenback’s value.
With the threat of global inflation fueled by soaring energy and food prices, it isn’t just the U.S. Federal Reserve that is likely to take action in an effort to stabilize rates. The entire world is now aware of the financial crisis, since the U.S. credit problem has spread to the broader global markets.
Central banks all over the world will have to coordinate efforts to mitigate the problem… continuing to inject liquidity into the global system.
Because of this, many economic experts believe we’re headed for inflationary times. And gold has always been a safe asset to protect your wealth against inflation.
Thing is, right now is the perfect opportunity for you to put your “toe in the water” ahead of the enormous gains that gold and gold resource stocks will bring in the next year…
Upward pressure on the price of gold will be driven by the current economic uncertainty surrounding the U.S. economy, increasing inflation and the strong demand for gold overseas.
Fact of the matter is, holding dollars has not been a “good idea” for several years now.
Foreign investors are slowly making that realization and are actively looking for investments that are appreciating, not depreciating.
Gold fits the bill.
With the steady decline of the stock market, not to mention the U.S. dollar, now is the best time to own something of real substantial value – GOLD.
Fact is, with the weak dollar, other countries are in the process of diversifying their dollar holdings – buying gold to get out of the dollar… And as gold’s popularity increases during this volatile time, you’ll see prices of gold and gold related stocks continue to soar upwards.
According to Mining Weekly… Dr. David Davis, a Senior Gold Analyst at Credit Suisse Standard Securities states…
“Between 2007 and 2010, supply-and-demand dynamics will undergo irreversible change, caused by a decline in global mine and official sector supply and increased demand from China and the investment community.”Gold Demand Surges Worldwide… While Gold Production Hits 84-Year Low
The economic fundamentals for gold are favorable. Production of gold from South Africa, United States, Australia and Canada, has dwindled every year over this past decade.
These countries, which combined, produce two thirds of the global gold through the 1980’s, now produce less than half of the gold mined today.
Meanwhile, physical demand for gold has been going through the roof. Much of the recent explosion in demand can be attributed to retail investors in India, China and other parts of Asia where the appetite for gold investments are soaring.
India, for example, is experiencing an 80% growth in gold investment following a loosening of trade and market restrictions.
And let’s not forget China… home to 1.3 billion people.
China, which has the fastest-growing economy in modern history, is undergoing major changes in the way it handles gold.
Private gold ownership has been outlawed for generations. But in 2002, the Shanghai Gold Exchange opened and started free trade in gold for the first time in the nation’s history.
Even more recently, China legalized gold investment by private citizens.
Considering the high savings rate in China, gold is a logical investment. It’s estimated that the equivalent of US $36 billion in Chinese private investment could move into gold in coming years.
Plus, the Chinese government is moving to increase its low gold reserves. Given these recent developments, China alone could consume 40% of the world’s entire gold production for years to come.
The worldwide monetary policy and global supply-and-demand for gold have already ignited a powerful rally that’s virtually certain to carry gold to much higher price points.
So now is the perfect time for you to jump on board the gold market rally…
Courtesy: Smart Profits Research
When the dollar is weak, which it has been in recent years, gold goes up.
And as the government pours over $8.5 trillion dollars of liquidity into the market and it filters down, there could be inflation of the type we have not seen since the early 80’s – and once that happens… gold could rally past $1,000… past $2,000… even soaring past $6,000 an ounce.
Remember… in the 80’s when inflation was 18%? Well if that happens again, some experts believe gold could soar as high as $6,000 an ounce.
And just when inflation was starting to surge – from 1975 to 1980 – precious metal stocks soared – Bankeno Mines from $1.25 to $430, handing early-in investors a 34,300% gain, Azure Resources from $.93 to $440 – a 47,211% gain and Wharf Resources from $.40 to $560 – an incredible 139,900% gain.
That five-year period was one of the biggest financial opportunities for investors in history.
And now we’re at the same crossroads... with inflation rising... the dollar falling... and the world in turmoil... and you’ve been handed another once-in-a-lifetime opportunity to invest in gold stocks which are poised to make double-, triple-, even quadruple- digit gains.
Just listen to what two of the brightest and most knowledgeable moneymen think about the weakening dollar:
Warren Buffett advises you to “build an ark” to protect against the fallout from the falling U.S. dollar.
Professor Kenneth Rogoff, a former head researcher at the International Monetary Fund, warns of a potential 40%+ drop in the greenback’s value.
With the threat of global inflation fueled by soaring energy and food prices, it isn’t just the U.S. Federal Reserve that is likely to take action in an effort to stabilize rates. The entire world is now aware of the financial crisis, since the U.S. credit problem has spread to the broader global markets.
Central banks all over the world will have to coordinate efforts to mitigate the problem… continuing to inject liquidity into the global system.
Because of this, many economic experts believe we’re headed for inflationary times. And gold has always been a safe asset to protect your wealth against inflation.
Thing is, right now is the perfect opportunity for you to put your “toe in the water” ahead of the enormous gains that gold and gold resource stocks will bring in the next year…
Upward pressure on the price of gold will be driven by the current economic uncertainty surrounding the U.S. economy, increasing inflation and the strong demand for gold overseas.
Fact of the matter is, holding dollars has not been a “good idea” for several years now.
Foreign investors are slowly making that realization and are actively looking for investments that are appreciating, not depreciating.
Gold fits the bill.
With the steady decline of the stock market, not to mention the U.S. dollar, now is the best time to own something of real substantial value – GOLD.
Fact is, with the weak dollar, other countries are in the process of diversifying their dollar holdings – buying gold to get out of the dollar… And as gold’s popularity increases during this volatile time, you’ll see prices of gold and gold related stocks continue to soar upwards.
According to Mining Weekly… Dr. David Davis, a Senior Gold Analyst at Credit Suisse Standard Securities states…
“Between 2007 and 2010, supply-and-demand dynamics will undergo irreversible change, caused by a decline in global mine and official sector supply and increased demand from China and the investment community.”Gold Demand Surges Worldwide… While Gold Production Hits 84-Year Low
The economic fundamentals for gold are favorable. Production of gold from South Africa, United States, Australia and Canada, has dwindled every year over this past decade.
These countries, which combined, produce two thirds of the global gold through the 1980’s, now produce less than half of the gold mined today.
Meanwhile, physical demand for gold has been going through the roof. Much of the recent explosion in demand can be attributed to retail investors in India, China and other parts of Asia where the appetite for gold investments are soaring.
India, for example, is experiencing an 80% growth in gold investment following a loosening of trade and market restrictions.
And let’s not forget China… home to 1.3 billion people.
China, which has the fastest-growing economy in modern history, is undergoing major changes in the way it handles gold.
Private gold ownership has been outlawed for generations. But in 2002, the Shanghai Gold Exchange opened and started free trade in gold for the first time in the nation’s history.
Even more recently, China legalized gold investment by private citizens.
Considering the high savings rate in China, gold is a logical investment. It’s estimated that the equivalent of US $36 billion in Chinese private investment could move into gold in coming years.
Plus, the Chinese government is moving to increase its low gold reserves. Given these recent developments, China alone could consume 40% of the world’s entire gold production for years to come.
The worldwide monetary policy and global supply-and-demand for gold have already ignited a powerful rally that’s virtually certain to carry gold to much higher price points.
So now is the perfect time for you to jump on board the gold market rally…
Courtesy: Smart Profits Research
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