Last Updated :
01 May 2009 at 13:50 IST
'Silver is misunderstood. Silver price can go to $25'
Building A Silver Portfolio 101 Investors looking for access to physical silver have a range of available options: bars, coins, rounds, etc. (Given the current investor desire for safe havens, bullion demand has been especially strong recently; data for the top four silver bullion coins shows a combined 93% upswing in first quarter sales year over year.) If storage is a problem, U.S. investors can also access physical metal via the aforementioned iShares Silver Trust ETF.
Investors can also try silver futures, which trade on the COMEX, or a futures-tracking ETF like the PowerShares DB Silver Fund (NYSE Arca: DBS). But Morgan prefers top-tier mining companies over futures plays. "With mining companies, you can get leverage for both the upside and downside, just like a futures contract - but they carry far less risk," he says.
Although dozens of multi-metal miners provide access to silver, few pure-play silver mining companies exist. Some include:
* Pan American Silver (NASDAQ: PAAS), one of the world's largest primary silver miners, which operates eight mines in Mexico, Bolivia and Peru.
* Silver Wheaton Corporation (NYSE: SLW), another major silver mining company operating mines in Mexico, Sweden, Peru, Greece and the U.S.
* Silver Standard Resources (NASDAQ: SSRI), which doesn't itself mine for silver but rather owns stakes in the mine properties. Their holdings include projects in Argentina, Peru, Mexico, Canada, Chile, Australia and the U.S.
How High Is High? No One Knows Morgan predicts that continuing financial instability will push silver higher throughout 2009. "I think silver will establish a wide trading range this summer," says Morgan. "But by early fall, we should start to see strength. By late 2009 into first quarter 2010, I'm looking for it to go beyond the $21 level it established in 2008."
The key, says Morgan, is the $25/ounce price point. "Once we get to that level and stay there for at least three or four consecutive trading days, I think you'll start to see a real acceleration in the silver market," he says.
"After that, how high is high? No one knows. There's no upside resistance once we break through that level, because anybody who owns silver is going to say, 'Well, I'm not going to sell now.' And that's when we'll see those markets really start to accelerate."
Reproduced with permission from http://www.hardassetsinvestor.com
MCX GOLD.995 04 August 2012
contract was trading at
Rs 28520 , up Rs. 133 . What's your view on it?
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