2006-06-05 14:58:16 · 3 answers · asked by iceberg_567 1 in Business & Finance ➔ Investing
Both silver and gold are subject to hording. When the price rises sufficiently, the metals start coming out of the woodwork. Back in the 80's when silver hit 60 an oz. It poured out of the woodwork and the price collapsed.
2006-06-06 00:39:57 · answer #1 · answered by Anonymous · 0⤊ 0⤋
As far as I know, there is no "deficit" of silver, however there is a high demand. Silver is used in a lot of industrial processes as well as being used in making money and jewelry. Increasing demand and a more or less steady production rate have caused the rise in silver prices, but this is the same for gas.
2006-06-05 15:03:36 · answer #2 · answered by quietwalker 5 · 0⤊ 0⤋
NO - What you are seeing is temporary demand pull because they were buying physical silver to back an ETF. The market is small but very volatile so be ready to lose your *** when you invest in silver stocks. PAAS CDE or SLW .. problem with these stocks and most mining stocks is that the mines are located in developing countries where the mines could be nationalized at any time. I have an interest in several of these names but the one that I think is the best bet, undercovered by the Street ... is GRS Gammon Lake Resources - it is a Canadian company whose assets are located in Mexico. They are expected to begin production in the 3rd quarter of this year. I suggest you take a long look at this one - at least all the public information i have read leads me to believe that you can make a good chunk of jack in this stock... In my opinion.
2006-06-05 15:06:44 · answer #3 · answered by Steve Austin ($6MM Man) 1 · 0⤊ 0⤋