Tag Archives: silver production

Silver is selling at less than half its 2011 high. It is being ignored more than gold. It has explosive fundamentals. This article assesses silver’s potential by looking at the big-picture forces that could impact silver over the next several years - and point to a possible runaway price scenario.

Analysts and investors seem to be very bearish towards silver, but we think that the fundamentals of silver are now becoming extremely attractive in terms of contrarian opportunities. Volatility and risk are not always commensurate, and we believe that silver offers investors fundamentals that can be much stronger than expected and returns that would be magnified by the small size of the silver market (and the bearish positioning by participants). Contrarian investors would be wise to take note.

The current availability ratio of physical silver to gold for investment purposes is approximately 3:1. So, why is it that investors are allocating their dollars to silver at a much higher ratio? What is it that these “smart” investors understand? Let’s have a look at the numbers and see if it’s time for investors to do as a wise man once said and “follow the money.” Words: 1052; Tables: 1