Sunday, April 24, 2011


The article & video is created by Mike Maloney. Original source Below is the summary :-

Which investment vehicle would you prefer to hold in the instance of a bank holiday?

The threat of a possible worldwide, round-robin currency devaluation is very real. It is not hard for us to imagine a time, not too far off in the future, where sovereign and institutional banking debts reach crisis crescendos, so much so that bank holidays may be declared globally.

Imagine a period of time when brokerage and banking accounts are frozen, ATM's are not functioning, communications may even be disrupted.

A Brenton Woods-type II scenario would most probably come about with central bankers from around the world gathering and agreeing upon on a round-robin of currency debasements based upon debt to GDP levels, etc.

In such a scenario almost every fiat currency will lose against real monies like physical gold and silver bullion.

At the same time, equities or stock shares will simply stand frozen in their brokerage accounts getting devalued in their respective currencies. In such a scenario physical gold and silver bullion could multiple many times in price while shares of mining stocks and other traded companies are debased in value.

Bullion vs. Mining Stocks? -> Our Bottom Line

For us the risk/reward ratio of mining shares stands second to the low risk - high reward ratio and potential gains for silver and gold bullion either in our hands and or stored in private 3rd party segregated vault storage facilities.

We will simply continue to put our gold and silver money where our hands can access it, as we patiently wait for what we believe will be the greatest wealth transfer in history.

Original source

Wednesday, April 6, 2011


Original Source
On March 31, 2011, In Big Picture, Gold, Markets, Silver, Smart Money Europe, Stocks, By Smart Money Europe For many times now, we have been analyzing the relationship between gold and silver. The price ratio of gold versus silver has been dropping in the last couple of years in favor of the white precious metal.

At the moment, the gold/silver ratio is trading below the “crucial” bandwidth of 40-to-50, currently hovering around 38x.

Since we are in a secular bull market for commodities in general, and precious metals specifically, the breakthrough marks the beginning of a new phase in the bull cycle. The gold/silver ratio could finally be on its way to our target of 16x, the historical bottom in the last century.

Taking into account our long term price target for gold of $5,000 per ounce, we should see a substantial upward acceleration in the silver price in the coming months and years.

By the way, our gold target of 5,000 was calculated back in 2005, when gold was trading around $500/ounce. We haven’t changed our target price for gold… but as the global crisis evolves futher, and Bernanke & Co keep on QE’ing, maybe we should review our model.

But that’s ‘food for thought’ for another time.

For now, lets stick to our 5,000-dollar-gold target. This will bring us silver prices of over $300 per ounce. From current levels, we are still looking for a tenfold increase in the price of silver!

When we talked about these kind of target prices for silver six years ago, when the metal was still trading below $10 per ounce, people would consider us cowboys. Nowadays, things are looking more realistic, but still investors can’t seem to grasp a three-digit silver price.

Well, we’ve got news for you: our TP of $300 for silver could turn out to be too conservative!

The latest research from Deutsche Bank shows that history has even a lower gold/silver ratio in store for us. Their research shows a ratio that averaged around 12x (hovering between 10x & 15x) during the Middle Ages. Furthermore, Newton fixed the gold/silver ratio to 15.5x from 1700 till 1873.

More research on our part led us to ancient Greece, where the existing gold versus silver mines varied between 10x and 13.5x.

The real price difference between both metals should vary between the available quantities in the earth’s crust. And that’s where things start to get tricky.

Scientists and geologists are very mixed in their conclusions, with some citing silver deposits over 20 times physical gold reserves, while others claim they are as low as 7x.

We think the lower end of these assumptions may be more useful as far as future silver prices are concerned, since silver is processed and consumed at a rapid pace — mainly due to the emerging markets giants China & India — while gold is being hoarded at the same speed.

If we take all the possible gold/silver ratio’s from the past, combined with the assumptions of the physical metals probably available on our planet today, then we could see the gold/silver ratio drop to 10x in the current bull cycle. This bring us to a silver price – still taking our target price for gold into consideration — of up to $500 per ounce and more! We won’t go there (for now), but it makes our current TP of $300 silver look less exaggerated, doesn’t it… stick to your guns, we still have a long way to go!

Would you like to take full advantage of the coming price explosion in silver? A mix of the right physical silver coins with a decent selection (junior) silver mining stocks will bring you maximum returns!

Are we being too conservative with our price target for silver?

Monday, April 4, 2011


Posted by Adam Sharp - Monday, April 4th, 2011 Original Source

Chart of industrial demand for silver by country:

silver industrial demand

From the Silver Institute's latest report (PDF).

Breakdown of industrial demand by product, via

  • Cell phones used 404.35 tonnes of silver;
  • Computers consumed 684.29 tonnes;
  • Thick film PV consumed 1,461.90 tonnes;
  • Automobiles which used 1,119.75 tonnes;
  • Electrical and electronics demand for silver reached an all-time high of 7,555.21 tonnes;
  • Solar power demand in 2011 is expected to reach 2,177.29 tonnes, up 40% from 2010;
  • RFID tags in 2010 reached between 31 and 62 tonnes with a long way to go before reaching full market;
  • Water purification used 62 tonnes, and is set to grow to 74.65 tonnes;
  • Medical applications may grow strongly to reach 93.3 tonnes by 2015;
  • The use of nano-silver in goods packaging and hygiene combined would consume 124.4 tonnes of silver over the next five years.
Silver is up nearly 2% today (4/4).

Other articles:-