Ramble On Ron

Diamonds, Music and other Facets of Life

Silver…The New Gold!

Posted on | January 8, 2011 | 9 Comments

The talk the past few years has been about the bull run of gold, now hovering at about $1400 per ounce. I even talked about gold hitting $1000 per ounce in September 2009 in this post “Gold Spot Prices At 1000, What’s Next?” I also made a prediction in that post that is spot on!

What do I think? I don’t think $4-5000 per ounce is realistic any time soon, but $1200 – $1500 is possible in the next year. I definitely do not think that gold will go back to $500-600 per ounce as it was not too long ago.

Not bad, huh? Anyway, the metal that people aren’t talking about that has actually had a higher percentage rise than gold is SILVER. This week silver closed at about $28.70 per ounce and was hovering over $30 earlier in the week. In the past 10 years, silver has gone from approx $5 per ounce to $30 per ounce. That’s SIX times it’s value from January 2000. Here’s the chart:

Kitco Silver Chart

Gold has gone up way more, dollar wise, in 10 years – from $300 per ounce to $1400. However, that’s only 4.5 times. Here’s the 10 year gold chart:

Kitco Gold Chart

So, despite all of the gold talk, silver is cruising! My prediction? Well I don’t have a crystal ball, but I see silver holding at $25-$30 an ounce and creeping up to $40 is certainly possible. With the world economy the way it is, we’re pretty bullish on metals. The Dow Jones has done NOTHING the past 10 years. However, our philosophy on gold and silver is that we don’t hold anything. We buy aggressively, make a small profit and move on to the next deal. Do not speculate because silver can go back down to $15 an ounce just as easily as it went up. If you have silver bars, silver flatware or silver coins, it’s a GREAT time to sell. Check out this video we made about selling sterling silver flatware and please contact me – I’m a buyer!

Comments

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  • Davidgalpert

    Silver is the ‘hot’ metal and from what I’ve been reading the demand for the metal will increase due to it’s heavy demand in manuf as well as it’s resurgence in jewelry.

  • Great point David! We’re seeing a lot of silver coins and flatware coming over the counter these days and I agree that we’ll be seeing more jewelry made in silver this year. Thanks so much for your comment.

  • Ron

    Thanks for the comment David. I agree that we’ll be seeing more jewelry manufactured in 2011 as gold continues to rise. We’re seeing a lot of coins and flatware over the counter these days…

  • Peter

    There is a shortage of actual silver on the market. We had to wait a couple of weeks recently to get delivery for our production.
    Silver is used in lots of high tech items. Most of that silver is not being recylced. It is lost from the total supply.
    I don’t expect the price of silver to go down very much. The main cause of price variance is because of speculators.

  • Jacoby Eyal

    As long as the US prints new $$ notes & the
    economy will not improve every thing will be bullish.

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