Silver Review And Outlook

Silver has been a much maligned metal in recent years. In the last three and a half years the price has fallen from around US$7.00 -$7.80 to as low as $3.50 this spring. It has consistently under-performed most other precious metals in the past few years, and has fallen to its lowest levels since the late 1940s in inflation-adjusted terms. Perhaps this is beginning to change. Since April, silver prices have outperformed gold and platinum. While this may continue in the years ahead, key questions remain regarding the pace and timing of any future silver price advances. I want to talk about the supply and demand factors that have led silver to its recent position. Also, I will outline a possible path for silver supply, demand, and prices for the next several years. Before I dive into my discussion of the silver market, allow me to explain who I am. One of the points we always make to clients early in a relationship is that, when you are listening to someone's opinions, you always must remember who it is you are listening to, and why he might be saying whatever it is he wants you to hear. So often, people take opinions from brokers, traders, or investment advisors as gospel truth, never stopping to ask themselves two key questions: Is there any reason to believe that this person knows what he is talking about, and, second, is he trying to sell me something, in telling me this.