2013 Silver Price Forecast: Silver Will Perform Like Gold on Steroids

The forecast for Silver is for the precious metal to set a a new all-time nominal price record, likely reaching as high as $54 an ounce. Despite silver’s dependency on gold, it does have some distinct fundamentals, too. Here are Peter Krauth’s, (Global Resources Specialist, Money Morning) key drivers for silver prices in 2013:

  1. The Gold/Silver Ratio: Before the financial crisis, the gold/silver ratio was around 50 (meaning an ounce of gold would buy you 50 ounces of silver) and trending downward. In late April last year silver exploded higher, pushing the ratio down below 30.

    That was short-lived, as silver’s dramatic rise was unsustainable. I had said so at the time. The ratio recently returned to a high level near 60. In 2013, look for the ratio to head back down again, meaning silver will rise faster than gold.

    On a long-term basis, I think we’ll see this ratio move down closer to 20. So right now, silver is looking rather undervalued relative to gold.

    2. gold-silver-price-chart-nov-2012

  2. Four More Years of Obama: The President has been very good for silver prices. In fact, he was so good, he
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Silver as an investment

Top ETF Winners And Losers In November: Palladium Trust

Palladium-Bars-New

Palladium shined brightest over all other ETFs in November.

ETFs Palladium Trust (PALL) soared nearly 13% during the month as workers went on strike at South African mines. The metal used in automobile catalytic converters is produced as a byproduct of platinum. South Africa accounts for 75% of global platinum mine supply.

Bloomberg reported platinum and palladium

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Precious Metals Investing, US Economy

Fiscal Cliff:Gold And Silver Poised To Rally Despite Economic Slowdown

fiscal cliff

Gold and silver have been trading sideways for most of 2012, but these precious metals may make higher prices their New Year’s resolutions. Although this market has been choppy and range-bound, gold appears to be poised for a possible breakout to the upside.

Gold (December) issued a buy signal on the daily chart Friday (Nov. 23) following a buy signal last Monday (Nov. 19), which was gold’s first buy signal since the trend changed to the upside. Gold is now super-trending to the upside and has closed above major resistance areas on the daily chart, which now acts as support. I define a super-trend as any market that trends above its nine-period simple moving average (SMA).

The trend remains up on the weekly chart and gold has little resistance overhead. Taking a look at gold’s weekly chart, you can see that gold has been stuck in a range for some time, and if gold takes out its September highs of around

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Precious Metals Investing, US Economy

Gold Price Forecast for 2013: Expect Record-Setting Year

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No two bull markets are ever the same, and gold is no exception.

During the last secular gold bull market in the 1970s, gold rose from $35 in 1968 all the way to $200 by late 1974.

Then the unthinkable happened. Between late 1974 and mid-1976, gold prices were cut in half, dropping from about $200 to $100.

At the time, many gold investors sold out in disgust, never to return.

But then a funny thing occurred. Gold prices started to climb again, rising from $100 in mid-1976 all the way to $800 by January 1980.

And anyone who was fortunate enough to own gold at $35 earned better than 20 times their investment in just 12 years.

Twenty-one years later, a new bull market began. Since 2001, gold has consistently performed in

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Gold as an investment

Morgan Stanley Predicts Major Recession in 2013 Doom Scenario


Morgan Stanley’s David Greenlaw talks about his outlook for the U.S. and global economy. He speaks on Bloomberg Television’s “Bloomberg Surveillance.” (Source: Bloomberg)

Morgan Stanley sounds “Recession Alarm”

The global economy is likely to be stuck in the “twilight zone” of sluggish growth in 2013, Morgan Stanley has warned, but if policymakers fail to act, it could get a lot worse.

The bank’s economics team forecasts a full-blown recession next year, under a pessimistic scenario, with global gross domestic product (GDP) likely to plunge 2 percent.

“More than ever, the economic outlook hinges upon the actions taken or not taken by

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Precious Metals Investing, US Economy

Is Obama’s ‘Fiscal Cliff’ Proposal a Deal-Breaker?

After the election President Barack Obama met with congressional leaders to discuss the “fiscal cliff.” Among the things campaigned for were tax hikes for the wealth to raise top income-tax rates but also to extend the Bush tax cuts for income levels below $200,000.

The president spoke about new ideas with his union and liberal-interest-group supporters, all of whom want to raise the top rates. Barack Obama spoke about providing a balance of spending cuts and tax increases only on the most wealthy earners.

However at this point a stalemate may be the most likely solution. Why?

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Silver as an investment, US Economy

Treasury Secretary Proposes to Lift Debt Limit to Infinity (VIDEO)

As reported by CNSNews.com Treasury Secretary Timothy Geithner said Friday that Congress should stop placing legal limits on the amount of money the government can borrow and effectively lift the debt limit to infinity.

On Bloomberg TV, “Political Capital” host Al Hunt asked Geithner if he believes “we ought to just eliminate the debt ceiling.”

“Oh, absolutely,” Geithner said.

“You do?  Will you propose that?” Hunt asked.

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US Economy

HSBC Expects $1,900/Oz Gold By Year-End, Ups 2013 Forecast

HSBC said Wednesday it looks for gold prices to hit $1,900 an ounce by year-end. “The Federal Reserve’s third round of asset purchases via quantitative easing (QE3) and other central banks’ policy easing measures are measurably boosting gold-investment demand,” the bank said in an updated forecast. “For investors who expect QE3 will fail to jump-start…

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Gold as an investment, Wealth Building Strategies

What is the Fiscal Cliff?

fiscal-cliff

“Fiscal cliff” is the popular shorthand term used to describe the conundrum that the U.S. government will face at the end of 2012, when the terms of the Budget Control Act of 2011 are scheduled to go into effect.

Among the laws set to change at midnight on December 31, 2012, are the end of last year’s temporary payroll tax cuts (resulting in a 2% tax increase for workers), the end of certain tax breaks for businesses, shifts in the alternative minimum tax that would take a larger bite, the end of the tax cuts from 2001-2003, and the beginning of taxes related to President

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Gold as an investment, US Economy